President Donald Trump’s majority-owned company, Trump Media and Technology Group Corp. (TMTG), is preparing to introduce exchange-traded funds (ETFs) and separately managed accounts (SMAs) under the Truth.FI brand.
The company has applied for trademarks related to these investment vehicles, including a Bitcoin (BTC) ETF.
Trump’s ETF Venture
The proposed investment products include the Truth.Fi Made in America ETF and SMA, Truth.Fi US Energy Independence ETF and SMA, and Truth.Fi Bitcoin Plus ETF and SMA. These offerings are designed to appeal to investors aligned with the company’s “America First” principles.
“We’re exploring a range of ways to differentiate our products, including strategies related to Bitcoin. We will continue to finetune our intended product suite to develop the optimal mix of offerings for investors who believe in America First principles,” said TMTG CEO Devin Nunes.
Nunes emphasized that the goal of Truth.Fi is to provide investors with alternatives to traditional financial products. These products, he claims, are influenced by “woke funds and debanking problems.”
TMTG plans to allocate up to $250 million to these financial instruments as part of this initiative. Charles Schwab will act as the custodian.
Meanwhile, Yorkville Advisors will serve as the Registered Investment Advisor, overseeing product development and regulatory approvals.
The announcement has sparked discussion among financial analysts and ETF experts. Bloomberg’s senior ETF analyst, Eric Balchunas, noted that despite Trump’s brand recognition, these ETFs may struggle to gather significant assets compared to existing products like the iShares Bitcoin Trust ETF (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC).
However, he acknowledged their contribution to the broader adoption of Bitcoin in mainstream finance.
“Safe to say first-ever POTUS ETF issuer. What a country,” Balchunas remarked.
Meanwhile, economist and vocal Bitcoin critic Peter Schiff speculated that the move could reduce the likelihood of a US Bitcoin Strategic Reserve.
“Well if this does in fact happen, I think it takes a Bitcoin Strategic Reserve off the table, if it ever really was on the table to begin with,” he stated.
While TMTG is expanding its financial footprint, Trump’s other financial venture has faced challenges. The Official Trump (TRUMP) meme coin, in particular, has struggled in the market after its initial hype faded.
The price has declined significantly after reaching an all-time high of $73.4. It was trading at $17.6 at press time, reflecting a 7.6% drop in the past 24 hours.
This represents a 76.0% decrease from its record high. Moreover, the market continues to remain under a bearish stronghold.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
