Bitcoin, the once marginalized digital currency, is now quietly entering the spotlight of major countries' strategies. Yesterday, the U.S. Commerce Secretary revealed that Trump will announce the "Bitcoin Strategic Reserve" plan at the White House Cryptocurrency Summit. From the vague promises during the campaign to the gradually forming policy blueprint, a question lingers in people's minds: what money does Trump plan to use to realize this ambition? Let's follow the clues and peel back the layers to find the answer.
Tariffs: From Trade Leverage to Funding Source
To unravel the mystery of the funding, Trump's economic ace - tariffs - is an unavoidable starting point. He has always seen tariffs as a tool to revive the U.S. economy. In early 2025, he proposed to impose 10%-25% tariffs on Chinese goods and similar actions on other trade partners. According to estimates by U.S. Global Investors, if these policies are fully implemented, they could generate an additional $80 billion to $200 billion in revenue per year. This scale of funding is substantial enough to support a national-level strategic project.
On March 6, sources further revealed that Michael Grimes, a former Morgan Stanley technology banker and current senior Commerce Department official, may lead the newly established U.S. Sovereign Wealth Fund, with the funding coming from tariffs. Trump even plans to set up a "Foreign Revenue Agency" to centrally manage these revenues, ensuring that the funds flow in line with his vision. From campaign slogans to policy implementation, the trail of tariff revenue is becoming increasingly clear. But will this money be directly used for the Bitcoin strategic reserve? The answer is not entirely evident.
Sovereign Wealth Fund and Bitcoin Reserve: Divergent or Convergent?
On February 3, 2025, Trump signed an executive order to formally launch the establishment of the Sovereign Wealth Fund, requiring the Treasury Department and the Commerce Department to submit a detailed plan within 90 days. Simultaneously, "Crypto Czar" David Sacks claimed that the Bitcoin strategic reserve is one of the government's top priorities. The temporal overlap of the two projects has sparked speculation: will they share funding, or will they have distinct roles?
The Sovereign Wealth Fund is positioned more as a booster for the traditional economy. Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick emphasized that the fund will prioritize investments in traditional assets such as equities and warrants, supporting sectors like defense, healthcare, and manufacturing. Although Bitcoin has been widely discussed, it may not be the fund's focus. Fortune Crypto speculates that even if Bitcoin is included, it may only account for 10% of the asset portfolio, more as an added bonus rather than a core pillar.
In contrast, the Bitcoin strategic reserve has a much clearer objective - to accumulate crypto assets, hedge against U.S. dollar inflation, and even challenge the strategic position of gold. Senator Cynthia Lummis' Bitcoin bill outlines the blueprint: starting with the government's approximately 200,000 forfeited Bitcoins (worth $20 billion), and then purchasing an additional 200,000 Bitcoins per year, reaching 1 million Bitcoins within five years. The proposed funding source for this plan is not tariffs, but rather the profits from Federal Reserve deposits and gold holdings, clearly separate from the Sovereign Wealth Fund's tariff revenue.
Where Does the Sovereign Wealth Fund's Money Come From?
To understand Trump's funding sources, we must first look at how he is playing the card of the Sovereign Wealth Fund. On February 3, 2025, Trump signed an executive order tasking the Treasury Department and the Commerce Department with establishing the U.S. Sovereign Wealth Fund. This fund is seen as a modern interpretation of the national reserve fund, aiming to invest for the benefit of future generations, rather than directly funding individual citizen expenses. According to data from the Sovereign Wealth Fund Institute, more than 90 sovereign wealth funds worldwide manage over $8 trillion in assets, many of which are supported by budget surpluses or revenues from commodity exports (such as oil and natural gas).
However, the situation in the U.S. is somewhat unique. In recent years, the federal budget has been in continuous deficit, lacking the traditional surpluses, and the U.S. is not a major exporter of resources like oil. Trump's answer points to a unique source - tariffs. He has repeatedly mentioned during his campaign that tariff revenue will be the cornerstone of the fund. According to Reuters, although Trump did not provide detailed operational details of the fund, Treasury Secretary Scott Bessent has stated that the fund will use the government's existing assets to "make money for the American people." On March 6, sources further revealed that former Morgan Stanley banker Michael Grimes may lead the fund, and the $80 billion to $200 billion in annual tariff revenue (based on U.S. Global Investors' estimates, if a 25% tariff is imposed on major trading partners) will be the primary funding source. Trump even plans to establish a "Foreign Revenue Agency" to manage these revenues, ensuring that the funds are directed as intended.
This is quite different from the models of Norway (relying on oil revenues, with a $1.74 trillion fund) or Middle Eastern countries (dependent on energy exports). The starting point for the U.S. Sovereign Wealth Fund is more like a lever that Trump has pried open through his trade policies.
Possible Funding Paths: From Existing Assets to Indirect Support
So, what money will Trump use to buy Bitcoin? The most direct option may be right in front of us - the government's existing 200,000 forfeited Bitcoins. These assets come from past crackdowns on illegal transactions and can be converted into strategic reserves without additional spending. As the consensus on the X platform suggests, this is the most effortless path currently, as it can fulfill the promise without immediately tapping into fiscal resources.
However, if the goal is a larger-scale accumulation, such as 1 million Bitcoins, the forfeited assets alone will not be enough. This is where the Sovereign Wealth Fund's tariff revenue may come into play. Imagine a scenario where the fund invests in traditional sectors to generate returns, and then allocates a portion of the profits to Bitcoin purchases. This indirect support would maintain the fund's independence while injecting vitality into the strategic reserve. However, this model would require clear cross-departmental coordination, which has not yet been seen.
There is also a more aggressive speculation - having the Federal Reserve sell gold to purchase Bitcoin. However, this idea not only requires Congressional approval but would also touch on the sensitive nerves of the financial system, making it highly unlikely in the short term. Compared to this, the flexibility of tariff revenue is undoubtedly more realistic.
International Reflection: Lessons from Gulf Countries
Trump's Bitcoin strategy is not entirely unique. As early as November 2024, market rumors suggested that Gulf oil-producing countries like Saudi Arabia and the United Arab Emirates have quietly made sovereign-level Bitcoin purchases and may have announced progress at the Abu Dhabi Bitcoin Summit that year. Although these rumors have not been fully confirmed as of March 2025, they provide a reference for the U.S. The fact that Bitcoin's total market capitalization has surpassed Saudi Aramco, and the potential actions of the world's largest sovereign wealth fund holders, are all hinting that the strategic value of crypto assets can no longer be overlooked. These international developments may have accelerated Trump's decision-making and added to the possibility of the U.S. Sovereign Wealth Fund venturing into Bitcoin.
The market is also responding with action. In early 2025, the Bitcoin price broke through $100,000, and VanEck Research predicts that if the U.S. holds 1 million Bitcoins, it could alleviate the pressure on the national debt. This optimistic sentiment is reinforcing the policy expectations. However, obstacles also exist: legal experts point out that establishing a strategic reserve may require congressional legislation, rather than just an executive order, which could limit the direct use of tariff revenue.
The Outline of the Answer
Back to the core question: what money will Trump use to buy Bitcoin? Based on the available clues, the most likely starting point is the use of the 200,000 forfeited Bitcoins, which is both effortless and efficient. If further expansion is desired, the Sovereign Wealth Fund's tariff revenue may provide indirect support, but the likelihood of direct utilization is relatively low. As for selling gold to purchase Bitcoin, this is more like a distant fantasy than a current option.
Trump's Block strategy reserve is both a move in the economic chess game and a response to global trends. It may start from a small administrative action, but it is enough to stir up waves in the financial world. And the final answer may be revealed at the moment of the White House Crypto Summit. Let's wait for the curtain to rise.
