The creation by Donald Trump of a sovereign fund overseen by Howard Lutnick is very good omen for the Bitcoin reserve.
Sovereign bitcoin
President Donald Trump signed a decree authorizing the creation of the very first American sovereign fund on Monday. Bitcoin went back to nearly $ 100,000 following this news.
A sovereign fund is managed by a government and contains assets such as real estate, stocks and obligations. The objective is to generate profits completing public spending.
Norway manages one of the most important sovereign funds in the world ($ 1,700 billion) which is already investing in Bitcoin. This investment of $ 400 million (+150 % in 2024) is however indirect, via microstrategy shares.
Note that Norway abounds its sovereign fund thanks to its large trade surplus (gas exports). Conversely, the United States has a trade deficit of more than $ 1,500 billion per year. In other words, there is a good chance that Washington will sell his gold to do his Bitcoins shops …
If Donald Trump has not specifically indicated that bitcoin would be included in the fund, senator Cynthia Lummis aroused enthusiasm by calling the announcement of “₿ig deal” In a post on X.
The “Tsar Crypto” press conference David Sacks This Wednesday is also going in this direction. The latter confirmed that Bitcoin could be included in an American sovereign fund, but that the decision returned to Howard Libenick.
Howard Lungick is the trade secretary and the boss of the Cantor Fitzgerald Bank. Under his leadership, there is no doubt that the sovereign fund will include bitcoins. Here is what Mr. Lutnick of Bitcoin thinks:
The Bitcoin plan of Howard Lutnick
Above all, you should know that Cantor Fitzgerald is the custodian of the Stablecoin Tether for his US treasury bills. Indeed, Tether invests most of his reserves ($ 140 billion) in American public debt. Cantor Fitzgerald even has 5 % of Tether.
During the Bitcoin 2024 conference in Nashville, Howard Lunick revealed that his bank had “A pack of bitcoins” (“A Shedload of Bitcoin”). The equivalent of several hundred million dollars which he intends to pass to “Several billion dollars”.
Better still, the banker had announced his ambition to launch a loan activity in exchange for bitcoin collaterals. More than $ 2 billion will be allocated at first.
This is why the dry, immediately after the departure of Gary Gensler, removed the accounting standard “SAB 121” which aimed to dissuade the banks from doing anything in connection with Bitcoin.
Our full article on the subject: American banks can finally touch Bitcoin.
Clearly, American banks can now directly offer bitcoins to those who did not want to go through questionable reputation platforms. All banks will soon offer childcare services and loans guaranteed by Bitcoins.
He is therefore in the interest of Howard Lutnick that the US government bought 200,000 BTC per year. This is in any case what Senator Cynthia Lummis offers in her Bitcoin Act bill.
Domino effect
There is little doubt that the United States will soon accumulate bitcoins. The whole world realizes it. Starting with the American states which are well placed to find out:
Many lead political figures have recently spoken out in favor of a Bitcoins national reserve. This is the case in Argentina, Brazil, Chile, the Czech Republic, Germany, Hong Kong, Japan, Russia as well as Switzerland.
The Czech Republic, where there are pioneering companies such as Trezor and Brains, recently caused a sensation. Its central bank studies the possibility of allocating up to 5 % of its reserves of 140 billion euros in Bitcoin.
India also reviews its position. “Several countries have changed their position with regard to cryptocurrencies […]. In this perspective, we review our own position ”said Ajay Seth, Indian Economic Affairs Secretary, during an interview with Reuters.
The Indian central bank remains hostile, as well as its European counterpart. During her last press conference, Christine Lagarde said she was convinced that no central bank in the euro zone will add Bitcoin to her reserves.
And while Christine Lagarde again pleaded in favor of the CBDC in her happy new year wishes, Donald Trump prohibited him by decree. Two rooms, two atmospheres … Once is not customary, Europe is shooting in the foot because of ideological bias which are sorely lacking in pragmatism.
At the end of the end, the whole world will line up with the United States. Bitcoin will fly straight around 200,000 euros when the United States takes action. Or even $ 700,000 if we believe the words of Larry Fink, the boss of BlackRock…
Don't miss our article: Bitcoin, what is the rational objective for 2025 ?
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