The creation by Donald Trump of a sovereign fund led by Howard Lutnick bodes very well for the bitcoin reserve.

President Donald Trump signed a decree on Monday authorizing the creation of the very first American sovereign fund. Bitcoin surged to nearly 100,000 dollars

The creation of the first American sovereign fund by Donald Trump is very promising for the bitcoin reserve.

Sovereign Bitcoin

On Monday, President Donald Trump signed a decree authorizing the creation of the first American sovereign fund. Bitcoin rose to nearly 100,000 dollars on the news.

A sovereign fund is managed by a government and contains assets such as real estate, stocks, and bonds. The goal is to generate profits to supplement public spending.

Norway manages one of the largest sovereign funds in the world ($1.7 trillion) that is already investing in bitcoin. This investment of $400 million (+150% in 2024) is, however, indirect, through Microstrategy’s shares.

It should be noted that Norway supplements its sovereign fund thanks to its large trade surplus (gas exports). In contrast, the United States has a trade deficit of over $1.5 trillion per year. In other words, there is a good chance that Washington will sell its gold to make its bitcoin purchases…

While Donald Trump has not specifically indicated that bitcoin would be included in the fund, Senator Cynthia Lummis stirred enthusiasm by calling the announcement “₿ig deal” in a post on X.

The press conference of the “crypto tsar” David Sacks this Wednesday also goes in this direction. He confirmed that bitcoin could be included in an American sovereign fund, but that the decision would be up to Howard Lutnick.

Who is the head of Cantor Fitzgerald bank. Under his leadership, there is no doubt that the sovereign fund will include bitcoins. Here’s what Mr. Lutnick thinks about bitcoin:

The Bitcoin Plan of Howard Lutnick

First and foremost, it’s important to know that Cantor Fitzgerald is the custodian of the Tether stablecoin for its US Treasury bonds. Indeed, Tether invests most of its reserves ($140 billion) in US public debt. Cantor Fitzgerald even owns 5% of Tether.

During the Bitcoin 2024 conference in Nashville, Howard Lutnick revealed that his bank owned “a bunch of bitcoins” (“a shedload of bitcoin”). The equivalent of several hundred million dollars that he intends to convert into “several billion dollars”.

Even better, the banker announced his ambition to launch a lending activity in exchange for bitcoin collateral. More than $2 billion will be allocated initially.

That’s why the SEC, immediately after Gary Gensler’s departure, eliminated the accounting standard “SAB 121” which aimed to discourage banks from doing anything related to bitcoin.

Our complete article on the subject: American banks can finally get their hands on bitcoin.

In short, American banks can now directly offer bitcoins to those who did not want to go through dubious reputation platforms. All banks will soon offer custody and loans secured by bitcoins.

It is therefore in Howard Lutnick’s interest for the US government to buy 200,000 BTC per year. This is at least what Senator Cynthia Lummis proposes in her “Bitcoin Act” bill.

Domino Effect

There is little doubt that the United States will soon accumulate bitcoins. The whole world is realizing it. Starting with the American states, who are well-positioned to know:

Numerous prominent political figures have recently spoken in favor of a national bitcoin reserve. This is the case in Argentina, Brazil, Chile, the Czech Republic, Germany, Hong Kong, Japan, Russia, and Switzerland.

The Czech Republic, home to pioneering companies such as Trezor and Braiins, has recently made headlines. Its central bank is exploring the possibility of allocating up to 5% of its reserves of 140 billion euros to Bitcoin.

India is also reviewing its position. “Several countries have changed their stance towards cryptocurrencies […]. In this context, we are re-examining our own position”, said Ajay Seth, the Indian Secretary of Economic Affairs, in an interview with Reuters.

However, the Indian central bank remains hostile, as does its European counterpart. Christine Lagarde has stated that she is “convinced that no central bank in the euro zone will add bitcoin to its reserves” during her latest press conference.

And while Christine Lagarde again advocated for the CBDC in her new year’s wishes, Donald Trump banned it by decree. Two rooms, two atmospheres… Once is not customary, Europe shoots itself in the foot because of ideological biases that lack pragmatism.

Ultimately, the whole world will align with the United States. Bitcoin will soar straight to 200,000 euros when the United States takes action. Or even $700,000 if we are to believe the words of Larry Fink, the head of BlackRock…

Don’t miss our article: Bitcoin, what is the rational goal for 2025 ?

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