Key Points
President Donald Trump has issued an executive order to form a sovereign wealth fund. This has led to conjecture about the US government’s possible investment in cryptocurrencies, particularly Bitcoin (BTC).
Understanding Bitcoin’s Evolution
In the past 17 years, Bitcoin’s price has risen from zero to an unprecedented high of $110,000. The path to this value has been far from straightforward. For instance, in 2010, it took 5,000 BTC to buy a pizza. A price surge followed the establishment of the infamous Silk Road marketplace in 2011. When US authorities shut down the marketplace, a subsequent US Senate public hearing unexpectedly drove Bitcoin’s price from a few hundred dollars to over $1,200 per coin.
The introduction of Ethereum (ETH) in 2016 sparked the first altcoin season, culminating in the initial coin offering boom of 2017. This period propelled Bitcoin to an astounding high of $20,000. Despite a crypto winter in 2017–2018, Bitcoin gradually recovered. The advent of decentralized finance and the explosion of nonfungible tokens brought fresh energy, as innovative projects and eager adopters drove up prices again. Even though Ethereum’s smart contracts were at the forefront of DeFi, Bitcoin remained the primary gateway for crypto investments.
Institutional investors made their entry as it seemed trends were slowing. Traditional financial institutions started to embrace Bitcoin, launching exchange-traded funds around 2022, which peaked in popularity between 2024 and 2025. This expanded access for both retail and institutional investors and bolstered Bitcoin’s status as “digital gold.”
There are now rumors that the US government might soon hold direct crypto investments through newly initiated Sovereign Wealth Funds. If this becomes reality, the United States would set a global precedent for other countries. This trend could shape the next two to five years and potentially send Bitcoin’s price skyrocketing, possibly fulfilling the wildest dreams by reaching $1,000,000 per coin.
Bitcoin has not fully become the “electronic cash” envisaged in Satoshi Nakamoto’s white paper. In legitimate markets, Bitcoin primarily functions as a store of value—a speculative asset traded by investors with little regard for its original utility.
Many governments already own some BTC, often seized from criminal enterprises. However, if treasury departments join late, they could miss significant profits, while early movers like El Salvador could enjoy a larger windfall. Each trend so far has expanded Bitcoin’s investor base, but what could surpass the participation of institutional organizations, superannuation funds, and national treasuries?
Bitcoin has operated as a publicly accessible ledger for over 17 years without major disruptions—an unparalleled feat. If national treasuries recognize Bitcoin’s resilience, it could pave the way for long-overlooked applications. Bitcoin has the potential to evolve into a robust application platform similar to Ethereum. Bitcoin’s higher fees could be justified by its unprecedented security—particularly for mission-critical public and private systems that handle valuable assets.
Bitcoin is designed for scenarios where reliability trumps cost. If national treasuries finally embrace Bitcoin as the ultimate digital store of value, it will open the door to its true utility as the digital fortress for the most critical pieces of public infrastructure.
