Trump's Truth Social Files for Bitcoin ETF to Compete with BlackRock

President Donald Trump’s Truth Social platform is making a significant move into the cryptocurrency market by filing for its own Bitcoin exchange-traded fund (ETF). This initiative is aimed at competing with major asset managers who have increasingly adopted cryptocurrencies over the past year. On Tuesday, NYSE Arca, the electronic division of the New York Stock Exchange responsible for most exchange-traded fund trading, filed a 19b-4 form to list a Bitcoin fund associated with Trump’s media company. This filing is a crucial step towards regulatory approval, allowing the fund to launch and trade on a US exchange.

The proposed fund, named the Truth Social Bitcoin ETF, is designed to track the price movements of Bitcoin, providing investors with a more accessible way to gain exposure to the cryptocurrency without directly holding it. This move follows a partnership announced in March between Trump Media and Crypto.com, which aims to develop a range of digital asset products scheduled for release later this year, pending regulatory approval.

The upcoming offerings are expected to include a mix of cryptocurrencies, such as Bitcoin and Crypto.com’s native Cronos (CRO) token, alongside traditional securities. These products will be branded under Trump Media and made available to a global audience through major brokerage platforms and the Crypto.com app, which serves over 140 million users worldwide. Since the launch of spot Bitcoin ETFs in January 2024, the market has experienced remarkable growth, swelling to over $130 billion in total assets. BlackRock’s iShares Bitcoin Trust (IBIT) currently dominates the market, boasting nearly $69 billion in assets, making it the largest digital asset manager globally.

These investment products have significantly contributed to the record high reached by BTC last week, nearing the $112,000 mark. Over the past two weeks, BlackRock’s IBIT ETF, Fidelity’s FBTC, and Grayscale’s Mini Trust ETF have received nearly $1 billion in inflows. Trump, as the majority owner of Truth Social’s parent company, Trump Media & Technology Group, has made several strategic moves aligned with the cryptocurrency sector in recent months. These moves include trademarking digital asset products and announcing a $2.5 billion Bitcoin treasury plan last week in Las Vegas.

If the Truth Social Bitcoin ETF is approved, it would represent one of the most politically connected entries into the already successful Bitcoin exchange-traded fund market. This move underscores the growing interest and investment in cryptocurrencies by major players, including former political figures, as the market continues to evolve and attract new participants. The filing for the Truth Social Bitcoin ETF highlights the platform's ambition to capitalize on the growing demand for cryptocurrency investment products and compete with established players in the market.