Trump's company plans to launch Bitcoin ETF
U.S. President Donald Trump's Trump Media & Technology Group (TMTG) plans to launch an exchange-traded fund (ETF) called "Bitcoin Plus ETF," making him the first U.S. president to be linked to the issuance of an ETF product. Trump's company's plan to launch a Bitcoin ETF marks TMTG's formal expansion into the financial services sector.
According to Bloomberg analyst Eric Balchunas, Trump is actively preparing to launch the Bitcoin Plus ETF. Balchunas announced on social media that although Trump himself is not the direct issuer of the fund, his company TMTG plays a leading role in the project.
TMTG recently announced that it would expand its business into the financial services sector and plans to launch a series of investment products, including a high-profile spot Bitcoin exchange-traded fund (ETF). As TMTG's largest shareholder, Trump's company has applied to the regulatory authorities for the Truth.Fi trademark, which will cover a variety of ETF products and separately managed accounts (SMAs). Among the many product lines, the Truth.Fi Bitcoin Plus ETF aims to provide investors with a direct channel to participate in the Bitcoin market.
To ensure product compliance and professionalism, TMTG has reached a cooperation agreement with Yorkville Advisors, which will serve as a registered investment advisor, responsible for overseeing various matters, including regulatory compliance, and assisting in the construction of related investment products. In addition, TMTG has committed to invest up to $250 million to support the expansion of its financial services business and has commissioned Charles Schwab as custodian. The investment amount accounts for more than 35% of TMTG's announced cash reserves of approximately $700 million.
In addition to the Bitcoin ETF, other investment products planned to be launched under the Truth.Fi brand include a Made in America ETF, an American Energy Independence ETF, and separately managed accounts focused on Bitcoin and key American industries.
Bloomberg analyst Balchunas emphasized that this is the first time a U.S. president has been directly linked to the issuance of an ETF product, although Trump himself or U.S. government agencies will not directly issue the relevant funds.
TMTG Chairman and CEO Devin Nunes positioned the company's upcoming financial products as an alternative to mainstream asset management companies. He particularly emphasized the company's focus on the Bitcoin space and said that its goal is to provide investors with investment options in key American industries such as energy and manufacturing to counter what he sees as investment strategies that promote "woke" ideology and financial restrictions advocated by traditional funds.
TMTG's decision to enter the Bitcoin ETF market at this time is undoubtedly significant, as institutional investor interest in the cryptocurrency industry is growing after U.S. regulators approved multiple spot Bitcoin ETFs last year. According to data provided by Farside Investors, U.S. spot Bitcoin ETF products have attracted nearly $40.7 billion in net inflows over the past year or so.
Although the market has reacted enthusiastically to the news, most analysts predict that Trump's ETF will likely be relatively small compared to market-leading products such as BlackRock's IBIT and Fidelity's FBTC. However, industry experts generally believe that the launch of the product will further consolidate Bitcoin's position in the mainstream investment market.
ETF Store President Nate Geraci also commented on the move, pointing out that it reflects the deepening connection between the ETF and cryptocurrency sectors.
