Trump's TMTG Launches Bitcoin ETF, Invests $250M in Financial Services

Trump Media and Technology Group (TMTG) has taken significant steps towards launching a Bitcoin exchange-traded fund (ETF), as part of its expansion into financial services. The company, with Donald Trump as its largest shareholder, has filed trademarks for multiple ETFs and separately managed accounts (SMAs) under the Truth.Fi brand, including the Truth.Fi Bitcoin Plus ETF.

TMTG has partnered with Yorkville Advisors, which will serve as the registered investment advisor for the funds. Yorkville will manage the regulatory process and product structuring. The company has also announced plans to invest up to $250 million in financial services, with Charles Schwab acting as the custodian. This investment represents over 35% of TMTG’s reported cash reserves of $700 million.

Other planned investment products include the Truth.Fi Made in America ETF and SMA, Truth.Fi U.S. Energy Independence ETF and SMA, and Truth.Fi Bitcoin Plus ETF and SMA. These initiatives are part of TMTG’s strategy to launch America First-themed investment vehicles, providing investors with options aligned with American energy and manufacturing.

TMTG CEO and Chairman Devin Nunes stated that the new products aim to offer investors a means to invest in American energy, manufacturing, and other firms that provide a competitive alternative to the “woke funds” and “debanking problems” prevalent in the market. The company is exploring a range of ways to differentiate its products, including strategies related to Bitcoin.

The move into Bitcoin ETFs comes as the crypto sector sees increased institutional adoption following the approval of multiple spot Bitcoin ETFs in the US last year. According to Farside Investors data, US-traded spot Bitcoin ETFs have amassed nearly $40.7 billion in net inflows over a little over a year since their launch.

Analysts have noted that while Trump’s ETF will likely be small compared to existing products such as IBIT or FBTC, its launch contributes to the growing mainstream acceptance of Bitcoin. The increasing overlap between ETFs and crypto markets has also been highlighted by industry experts.