Trump's TMTG Launches Bitcoin ETF, Marking First by a U.S. President

Former U.S. President Donald Trump's company, Trump Media and Technology Group Corp. (TMTG), has announced plans to launch a Bitcoin exchange-traded fund (ETF), marking the first time a former U.S. president is associated with an ETF launch. The company, where Trump is the largest shareholder, has filed trademarks under the Truth.Fi brand to cover various ETFs and separately managed accounts (SMAs), including the Truth.Fi Bitcoin Plus ETF.

TMTG has partnered with Yorkville Advisors, which will act as the registered investment advisor, overseeing regulatory procedures and structuring the investment products. The company has also committed up to $250 million toward its financial services expansion, with Charles Schwab as the custodian. This investment accounts for over 35% of TMTG's reported $700 million cash reserves.

Other investment offerings under the Truth.Fi brand include the Made in America ETF, the U.S. Energy Independence ETF, and separately managed accounts focusing on Bitcoin and U.S. industries. TMTG Chairman and CEO Devin Nunes described the company's new financial products as an alternative to mainstream asset management firms, highlighting a focus on Bitcoin and American energy, manufacturing, and other industries as a response to traditional funds that promote "woke" policies and financial restrictions.

The launch of Bitcoin ETFs comes as the crypto industry experiences growing institutional interest following last year's approval of multiple spot Bitcoin ETFs in the U.S. Data from Farside Investors reveals that U.S.-based spot Bitcoin ETFs have accumulated nearly $40.7 billion in net inflows within just over a year. Despite the buzz, analysts believe that Trump's ETF will likely be smaller compared to BlackRock's IBIT and Fidelity's FBTC, which dominate the market. However, experts agree that its launch further solidifies Bitcoin's mainstream acceptance.