The rapidly evolving landscape of cryptocurrency is witnessing a new player as President Trump’s Truth Social platform gears up to launch its own Bitcoin exchange-traded fund (ETF). This strategic move aims to carve out a niche in a market already bustling with competition from top asset managers who have embraced digital currencies over the past year.
Truth Social Moves to Launch Bitcoin ETF
In a recent development, NYSE Arca, the digital arm of the New York Stock Exchange, submitted a 19b-4 form seeking approval to launch a Bitcoin ETF linked to Trump’s media venture. This filing is a pivotal step in securing the necessary regulatory green light, paving the way for the fund’s debut on a major U.S. exchange.
Dubbed the Truth Social Bitcoin ETF, this innovative fund aims to track the fluctuations in the price of Bitcoin, offering investors a seamless way to engage with the cryptocurrency market without the complexities of direct ownership.
This initiative follows a significant partnership unveiled in March between Trump Media and Crypto.com, focused on creating an array of digital asset offerings expected to launch later this year, pending regulatory approval.
Strategic Innovations: A $2.5 Billion Bitcoin Initiative
A recent report by CNBC highlighted that these forthcoming products will likely encompass a diverse mix of cryptocurrencies, including Bitcoin and Crypto.com’s own Cronos (CRO) token, in addition to traditional financial assets.
These offerings will be marketed under the Trump Media brand and aim to provide access to investors on a global scale, utilizing major brokerage platforms and the popular Crypto.com app, which boasts over 140 million users worldwide.
Since the introduction of spot Bitcoin ETFs in January 2024, the sector has surged, accumulating over $130 billion in total assets. BlackRock’s iShares Bitcoin Trust (IBIT) currently leads the market, amassing nearly $69 billion in assets and positioning itself as the largest digital asset manager in existence.
The influx of investment products has played a crucial role in driving Bitcoin to new heights, recently approaching $112,000. In the past two weeks alone, BlackRock’s IBIT ETF, alongside Fidelity’s FBTC and Grayscale’s Mini Trust ETF, has garnered almost $1 billion in new investments, according to data from Farside sources.
Trump holds a majority stake in Truth Social’s parent entity, Trump Media & Technology Group. The company has been actively positioning itself within the cryptocurrency sector, recently trademarking several digital asset concepts and announcing plans for a $2.5 billion Bitcoin treasury during an event in Las Vegas.
The potential approval of the Truth Social Bitcoin ETF could signify one of the most politically influential entries into the thriving Bitcoin ETF arena, as indicated by the CNBC report.
Currently, the TRUMP memecoin is trading at $11.21, reflecting a substantial decline of over 84% from its peak of $73, achieved just one day post-launch.
Image sourced from DALL-E; chart credits to TradingView.com.
