Trump launches U.S. sovereign wealth fund and earns millions with his memecoin

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Last Updated on 4 February 2025 by CryptoTips.eu

President Donald Trump has signed a new executive order requiring the U.S. to establish a sovereign investment fund. This decision, which must produce a concrete plan within 90 days, immediately raises questions about possible investments in Bitcoin.

Bitcoin advocate and Senator Cynthia Lummis calls the decision a “big deal.”

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A U.S. sovereign wealth fund: how will this work?

Unlike some states, such as Texas and Alaska, the country as a whole does not yet have a sovereign investment fund. Trump states that the U.S. has “enormous potential” and expects the fund to become one of the largest in the world. According to the executive order, funding will come from import tariffs and other revenue streams.

A notable aspect is that Trump previously suggested setting up a strategic Bitcoin reserve. This raises speculation about whether the sovereign wealth fund could acquire cryptocurrencies like Bitcoin as a strategic asset.

Trump’s crypto ventures and market chaos

In addition to establishing the sovereign wealth fund, Trump also appears to be personally benefiting from the crypto market. The official Trump (TRUMP) memecoin, which was launched shortly before his inauguration, has reportedly already generated over $800 million.

Coinbase director Conor Grogan reports that the project has sent $482 million in stablecoins and Solana (SOL) to exchanges, with another $290 million in liquidity and fee revenue.

Meanwhile, the crypto market experienced a chaotic day. Bitcoin briefly dropped below $93,000 before later rising above $102,000 again. Other tokens like Ether, XRP, and Chainlink plunged by 33%, while Solana lost 20% before recovering.

This volatility was largely attributed to the new import tariffs Trump imposed on Canada, Mexico, and China. Although he later postponed the implementation of these tariffs for Canada and Mexico, the news caused panic in the market.

In total, a record $2.3 billion in crypto positions were liquidated on February 3, a higher amount than during the FTX crash and the COVID crisis.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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