News
  • Vignesh S G
    author-profile

    Vignesh S G right arrow

    Author

    Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

    • 2 minutes read

    Lutnick’s Role in Trump’s U.S. Sovereign Wealth Fund Revealed: What Does It Mean for Bitcoin?

    Story Highlights
    • Trump signed an executive order to create a US Sovereign Wealth Fund, with Howard Lutnick, a close Trump ally, likely to play a key role.

    • Cantor Fitzgerald, formerly led by Lutnick, significantly increased its holdings in Strategy.

    • This fueled speculations that Cantor Fitzgerald may be acting on insider information related to Lutnick's involvement with the fund.

    Earlier this month, U.S. President Donald Trump signed an executive order to create a U.S. Sovereign Wealth Fund, a move that could reshape the nation’s economic future. Howard Willaim Lutnick, a close ally of Trump, is expected to play a leading role in the fund’s development. Lutnick, who Trump is likely to nominate for Secretary of Commerce, could have a major influence on how the fund is set up.

    Curious? Keep reading to find out how these pieces fit together.

    Cantor Fitzgerald’s Bold Move

    An intriguing post by Cory Bates on X (formerly Twitter) highlights Cantor Fitzgerald’s recent actions. Bates shared that the firm, once led by Lutnick as CEO, has increased its holdings in Strategy by at least 20% this quarter. Strategy is known for its aggressive Bitcoin investment strategy, making this move noteworthy.

    Could this increase in holdings be linked to Lutnick’s expected role in the U.S. Sovereign Wealth Fund?

    Who Is Lutnick?

    Lutnick has been a key supporter of Trump for years, serving as a major fundraiser for Trump’s 2020 and 2024 presidential campaigns. He also co-chaired Trump’s 2024 presidential transition team. Given their close relationship, Lutnick’s involvement in the creation of the Sovereign Wealth Fund seems like a natural next step in his business and political career.

    The Executive Order: What It Means for America’s Economy

    On February 3, 2025, the White House released an executive order directing the establishment of the U.S. Sovereign Wealth Fund. The order aims to make sure the country’s national wealth is used to benefit all Americans.

    According to the press release, the fund is designed to promote fiscal sustainability, reduce the tax burden on American families and small businesses, ensure economic security for future generations, and strengthen the U.S.’s economic leadership globally.

    The order calls on the Secretary of the Treasury and the Secretary of Commerce to submit a plan for setting up the fund within 90 days. This plan will outline key areas such as funding, investment strategies, the structure of the fund, legal considerations, and how it will be managed.

    Cantor Fitzgerland’s Investments

    According to Bates’ X post, Cantor Fitzgerald increased its holdings in Strategy by 20% this quarter.

    It is clear that Bates suspects that the firm’s investment decisions might be informed by insider knowledge or strategic foresight related to Lutnick’s position with the newly proposed Sovereign Wealth Fund.  

    Strategy is one of the largest corporate holders of Bitcoin, currently holding 478,740 BTC, worth over $46 billion. The company’s stock (MSTR) has been performing well lately, with a 1.37% increase in the past five days and a 3.94% surge in just the last 24 hours.

    This growth could be a sign of things to come as the U.S. Sovereign Wealth Fund starts to take shape.

    Never Miss a Beat in the Crypto World!

    Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

    Show More

    Related Articles

    Back to top button