Chamath Palihapitiya’s Crypto Strategy: USA to Use

The US is considering creating a sovereign wealth fund, but needs to determine funding and management.  

A proposal suggests using the US government's Bitcoin holdings to launch the fund, potentially generating $50-100 billion.

This approach, similar to strategies used by Norway and the UK, could diversify risk and provide a hedge against inflation.

President Donald Trump information 

 has ordered the creation of a U.S. sovereign wealth fund within a year. The Treasury and Commerce Departments have 90 days to present a plan on how to fund and manage it. However, since the U.S. runs on a deficit, Congress must approve the proposal before it can move forward.

But what if the government could fund it without borrowing money?

Chamath Palihapitiya’s Bitcoin Strategy

Billionaire investor Chamath Palihapitiya has suggested an alternative approach – using the U.S. government’s Bitcoin holdings to help fund the project.

The U.S. holds about 198,109 BTC, worth roughly $19.4 billion. Palihapitiya believes that instead of taking on more debt, the government could use these Bitcoin reserves while also gradually selling off other assets, such as 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.

He estimates that by managing these assets carefully, the government could raise between $50 billion and $100 billion in the next two to three years—without borrowing.

A Diversified Investment Approach

Palihapitiya also recommends a balanced investment strategy to ensure long-term stability. He suggests that the fund should include:

Index funds

Bonds

Hedge funds

Private equity

He advises that venture capital should make up less than 10% of the portfolio, ensuring steady returns while keeping risks low.

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.

Other Countries Are Already Doing This

According to a Bloomberg report, Treasury Secretary Scott Bessent confirmed that the funding process has begun and should take about 12 months. If successful, this sovereign wealth fund could provide long-term economic stability for the U.S.

While Alaska has run its own sovereign wealth fund for years, the federal government has never created one. Meanwhile, other countries have already incorporated Bitcoin into their financial strategies:

Norway’s sovereign wealth fund has invested in crypto businesses.

The UK government holds about 61,200 BTC.

These investments help hedge against inflation and reduce risk, as Bitcoin does not move in sync with traditional assets like stocks and bonds. If the U.S. follows a similar path, it could mark a major shift in how governments manage digital assets.