How Trump’s Sovereign Wealth Fund Is Bullish for Bitcoin

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    Just a few days ago, U.S. President Donald Trump signed an executive order establishing the creation of a U.S. sovereign wealth fund. And as soon as I heard the news, I thought: it is time to buy cryptocurrencies.  

    Now, the crypto markets have been especially volatile lately, so you might be thinking I’m dead wrong on this one. But follow me here. 

    Over the past year, Trump has evolved into a huge crypto industry backer, consistently promising big support on the campaign trail. Now that he’s in the White House, it is time for some of that talk to turn into walk. 

    And when it comes to ‘walk,’ perhaps the biggest and most influential thing Trump can do for the industry is have the U.S. government itself be a buyer of Bitcoin (BTC/USD). 

    With a new sovereign wealth fund (SWF) in place, he has an avenue to do just that.

    What Is a Sovereign Wealth Fund?

    Sovereign wealth funds are state-owned investment funds that manage a country’s surplus resources – often consisting of excess revenues from things like natural resource exports, budget surpluses, or foreign exchange reserves – and invest them in a variety of assets. 

    The objectives of a SWF vary. But typically, they center around diverse investing to earn returns (and make money) for a country. 

    Norway has a very well-known SWF that invests the nation’s oil revenues in a broad portfolio of international assets. Singapore, China, and the United Arab Emirates are among other countries that maintain large sovereign wealth funds. 

    Now Trump wants the U.S. to get into the game. 

    Of course, throughout Trump’s career, he has been known to do things differently – to think outside the box and swing for the fences. He tends not to follow the path well-traveled. Instead, for better or worse, he blazes his own trail. 

    Given that ‘calling card,’ it makes sense that Trump would want the U.S. sovereign wealth fund to buy a bunch of Bitcoin.  

    Not to mention, based on our research, no major sovereign wealth fund in the world has invested in Bitcoin directly. Some – like Norway and Saudi Arabia’s SWFs – have indirectly invested via crypto-related companies, like MicroStrategy (MSTR). But none have bought BTC directly.

    We bet Trump would love for the U.S. to be the first.  

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