On February 6, Trump Media and Technology Group, primarily owned by the former U.S. President, submitted trademark applications for new investment products under its fintech brand, Truth.Fi. These include three types of investment funds: a "Made in America" exchange-traded fund (ETF) and separately managed accounts (SMA), a "US Energy Independence" ETF and SMA, and a "Bitcoin Plus" ETF and SMA.
With the development, Trump is set to become a unique entrant into the ETF sector, possibly becoming the first former U.S. President to issue an ETF.
Charles Schwab will oversee custody for up to $250 million, and Yorkville Advisors will offer strategic advice. Devin Nunes, CEO of TMTG, stated that the objective of these funds is to provide viable options against what he describes as "woke funds."
Nunes elaborated, "Our aim is to offer investment vehicles in American energy, manufacturing, and firms that present a strong alternative to the so-called woke funds and debanking challenges seen in the market." He also mentioned exploring various strategies, including those concerning Bitcoin, to distinguish their offerings.
ETF analyst Eric Balchunas from Bloomberg highlighted that while these funds might capture only a small fraction of assets compared to larger competitors like the BlackRock iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), their launch contributes significantly to the rising trend of Bitcoin's mainstream acceptance.
TMTG maintains over $700 million in cash and similar instruments at the year's end, supplemented by the $250 million managed by Schwab. Following the recent announcement, the company's stock (DJT) experienced a 5.6% increase.
Despite the positive developments in the investment sector, Bitcoin and broader cryptocurrency markets showed a downturn toward the end of the week. Trump’s son, Eric, suggested it was an opportune moment to invest in Bitcoin, though the market displayed little response.
In the meantime, Donald Trump’s official meme cryptocurrency, TRUMP, also reacted negatively, declining by 6% and trading at $17.50 at the time of writing. The token has plummeted 76% from its peak of $73 three weeks ago as meme coins face widespread declines.
Bitcoin markets similarly showed no marked reaction, with prices hitting an intraday low of $95,800 before a slight recovery to $97,000 during Asian trading hours on Friday. The U.S. spot Bitcoin ETFs also showed negative movement, recording a $140 million outflow following two consecutive days of inflows.