Trump Media & Technology Group Plans Bitcoin ETF, Bolstering Presidential Ties to Crypto
Trump Media & Technology Group (DJT), the eponymous media venture of former US President Donald Trump, seeks to launch a Bitcoin exchange-traded fund (ETF) called "Bitcoin Plus ETF." This move marks another avenue for Trump to financially benefit from the ongoing surge in digital assets.
Aligning Investments with Presidential Priorities
The proposed ETF is part of Trump Media's broader Truth.Fi brand, which aims to provide investors with exposure to sectors aligned with Trump's economic policies. According to Devin Nunes, Trump Media's CEO, the ETF will offer "a competitive alternative to woke funds and debanking problems" prevalent in the market.
Leveraging Crypto Enthusiasm and Regulatory Push
The announcement highlights Trump's potential to capitalize on investor bullishness towards cryptocurrencies while simultaneously advocating for favorable regulation in Washington, D.C. Previously, during his 2024 presidential campaign, Trump pledged to establish the US as the "crypto capital of the planet."
Financial Partnerships and Backing
Trump Media plans to invest up to $250 million of Truth.Fi's funds into cryptocurrencies and other investments. Charles Schwab (SCHW) will provide custody for these assets. Additionally, Trump and his family have supported other crypto ventures, including the meme coins TRUMP and MELANIA and the crypto project World Liberty Financial.
Regulatory Developments and SEC Oversight
Trump's interest in crypto aligns with his efforts to create clearer regulations for the industry. The White House has established a working group led by AI and crypto czar David Sacks to assess digital asset stockpiles. The SEC, currently led by acting chair Mark Uyeda, has also formed a crypto taskforce headed by Commissioner Hester Peirce.
Outlook for Truth.Fi ETFs
The Bitcoin Plus ETF and other Truth.Fi ETFs require SEC approval. Trump's nominee for SEC chair, Paul Atkins, awaits Senate confirmation. The regulator's recent elimination of accounting guidance SAB 121 signals a more favorable environment for US banks to engage with cryptocurrencies.