Billionaire investor Chamath Palihapitiya has a suggestion for jumpstarting the US’s new federal sovereign wealth fund: use the government’s Bitcoin.
Leveraging Bitcoin and Other Assets
President Trump recently signed an executive order creating this fund, aiming for long-term financial stability and economic growth. Palihapitiya tweeted that the government could quickly get the ball rolling by using existing assets, including its Bitcoin holdings. He proposed a multi-pronged approach:
- Selling a portion of the government’s TikTok stake.
- Borrowing against its Bitcoin holdings. This would avoid selling the Bitcoin immediately.
- Adding revenue from land sales and other government assets. He estimates this could generate $50-$100 billion in the first few years without needing additional borrowing.
Investing the Funds
Palihapitiya suggests a diversified investment strategy for the fund, including:
- Index funds
- Bonds
- Private equity
- Hedge funds
- Venture capital (with a smaller, decreasing allocation)
The Bitcoin Factor
According to one source, the US government currently holds around 198,000 Bitcoin, valued at roughly $19.4 billion. This significant cryptocurrency holding could provide a substantial initial investment for the new sovereign wealth fund. While many states already have their own sovereign wealth funds, this would be a first for the federal government.
Disclaimer: This information is for general knowledge only and is not financial advice. Always conduct your own thorough research before making any investment decisions./p>
