Effectively, it's a government-run hedge fund that invests in assets like stocks, bonds, real estate, and infrastructure. It's a fairly straightforward process: the government provides funds, and the SWF invest it into risky assets to try to earn profits. This is the same as any investment company, only that its sole investor is the government.

Trump signs executive order for sovereign wealth fund, sparking speculation about potential US Bitcoin accumulation strategies.

On Feb. 4, newly appointed crypto czar David Sacks said in a press conference that the bicameral crypto working group is looking into a strategic Bitcoin reserve (SBR) and highlighted that “the concept of the sovereign wealth fund is a little separate.

The U.S. government has a large trade deficit and budget deficit, thus unable to fund a National Crypto stockpile and a Sovereign Wealth Fund. Learn more on BTC-USD here.

Other similar government-owned funds have invested in Bitcoin and crypto-related projects. So will this one do it too?

Sen. Cynthia Lummis of Wyoming fueled talks in the crypto community about the U.S. sovereign wealth fund potentially holding Bitcoin after she posted on X using the top cryptocurrency's symbol.

Trump’s plan for a U.S. sovereign wealth fund could reshape the economy, but funding and political risks raise questions.

U.S. President Donald Trump signed an executive order Monday afternoon charging the Treasury and Commerce Departments with creating a sovereign wealth fund.