David Sacks, the Trump administration’s crypto adviser, said a proposed U.S. sovereign wealth fund could eventually choose to include bitcoin or other digital assets in its portfolio, adding a new layer to the debate over whether Washington should hold crypto at the national level.
Bitcoin inclusion remains under consideration
Speaking with CNBC on Feb. 4, Sacks said it is possible that the sovereign wealth fund could decide to make bitcoin or digital assets part of its holdings. At the same time, he stressed that more detail would need to come from incoming Commerce Secretary Howard Lutnick, suggesting that the idea is still at an exploratory stage rather than a finalized policy choice.
Sacks also said President Trump asked the administration’s digital asset working group to study whether it is feasible to create either a strategic bitcoin reserve or some form of digital asset stockpile. He made clear that no commitment has yet been made, but said the issue is among the first matters the group will examine.
Executive order sets 90-day plan
According to the White House fact sheet, Trump signed an executive order on Feb. 3 directing the Treasury Secretary and the Commerce Secretary to deliver a plan within 90 days for the creation of a U.S. sovereign wealth fund. The fund would invest national assets totaling at least $5.7 trillion, with the stated goals of boosting economic growth, reducing tax burdens, and improving long-term fiscal sustainability.
The report noted that sovereign wealth funds are already widely used around the world. In the U.S., 23 states currently manage similar funds worth about $332 billion. Against that backdrop, discussion of adding bitcoin to a federal sovereign wealth structure is being viewed as a potentially significant policy development.
Supporters cite inflation hedge, critics warn of volatility
The proposal to study a strategic bitcoin reserve has drawn support from parts of the crypto industry, which argue that bitcoin could serve as a hedge against inflation and strengthen the country’s financial position. Critics, however, continue to point to the asset’s inherent volatility as a major risk for any government-managed reserve strategy.
Lutnick’s past comments have added to market speculation. At the Bitcoin 2024 conference, he compared bitcoin to gold and said it should trade freely worldwide. His firm, Cantor Fitzgerald, has also been active in crypto, including work related to Tether reserves. Those factors have fueled expectations that he may favor a more open stance toward digital assets within the proposed sovereign wealth fund.