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2025-02-05 13:30:28

Chamath Palihapitiya’s Crypto Strategy: Using Bitcoin to Kickstart a U.S. Sovereign Wealth Fund

The post Chamath Palihapitiya’s Crypto Strategy: Using Bitcoin to Kickstart a U.S. Sovereign Wealth Fund appeared first on Coinpedia Fintech News Recently, President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President ordered the creation of a US sovereign wealth fund within a year. The Treasury and Commerce Departments must present a plan in 90 days, detailing how to fund and manage it. Since the US runs on a deficit, Congress would need to approve the fund before it becomes a reality. But here’s one analyst who has suggested a plan B to reduce government spending on the Sovereign Wealth Fund. Analyst Proposes New Idea Taking a chance on this matter, Billionaire investor Chamath Palihapitiya has floated an interesting idea—what if the U.S. government uses its Bitcoin holdings to kickstart a new sovereign wealth fund? With the U.S. holding about 198,109 BTC, worth roughly $19.4 billion, Palihapitiya suggests that instead of borrowing money, the government could use these Bitcoin holdings while slowly selling off assets like its 50% stake in TikTok. I think we can start by slowly selling down our 50% share of TokTok + borrowing against our BTC holdings if we didn’t want to sell them. We can then add to this by directing any revenues from land/drilling deals and sales of any RE from all of the abandoned buildings. This is… — Chamath Palihapitiya (@chamath) February 4, 2025 Palihapitiya estimates that through careful asset management, the government could generate $50-100 billion over the next two to three years—without the need for borrowing. Moreover, he recommends that the sovereign wealth fund be diversified across index funds, bonds, hedge funds, and private equity, with venture capital making up less than 10% of the portfolio. This idea is to ensure that the money rotates rightfully and gives long-term returns while minimizing risk. As per the Bloomberg report , Treasury Secretary Scott Bessent said that funds are on the way and it will take 12 months. These funds can provide long-term stability in the US economy. .article-inside-link { margin-left: 0 !important; border: 1px solid #0052CC4D; border-left: 0; border-right: 0; padding: 10px 0; text-align: left; } .entry ul.article-inside-link li { font-size: 14px; line-height: 21px; font-weight: 600; list-style-type: none; margin-bottom: 0; display: inline-block; } .entry ul.article-inside-link li:last-child { display: none; } Also Read : Trump’s 100-Day Plan: Pro-Crypto Policies, National Bitcoin Reserve, & More! , A First for the U.S. While states like Alaska have successfully started their sovereign wealth funds for years, the federal government has never established one. Countries like Norway and the UK have already used Bitcoin in their financial strategies. Norway’s sovereign wealth fund has invested in crypto businesses, and the UK government holds around 61,200 BTC. These investments serve as hedges against inflation and diversify risk, especially since Bitcoin doesn’t move in sync with traditional assets like stocks and bonds. 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