On February 6, Trump Media and Technology Group (TMTG), majority-owned by the former US President, announced plans for launching new investment vehicles under its fintech brand, Truth.Fi.
Filed trademark registrations revealed three kinds of investment funds that TMTG aims to introduce. These include a “Made in America” exchange-traded fund (ETF) and separately managed accounts (SMA), a “US Energy Independence” ETF and SMA, and notably, a “Bitcoin Plus” ETF and SMA.
Bloomberg ETF analyst Eric Balchunas commented on the announcement, stating, “Safe to say first-ever POTUS ETF issuer. What a country.”
The proposed plan includes a $250 million custody arrangement with Charles Schwab, with advisory assistance from Yorkville Advisors. According to TMTG CEO Devin Nunes, these funds are intended as alternatives to “woke funds.”
Nunes explained, “Our goal is to provide investors with a means to invest in American energy, manufacturing, and other companies that offer a competitive alternative to the woke funds and debanking issues prevalent in the market.”
He also mentioned the company’s interest in Bitcoin-related strategies for product differentiation.
Despite the backing of Trump’s brand, Balchunas speculated that these funds will likely gather minimal assets compared to established players like BlackRock iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund. However, he noted that such a launch contributes to the mainstream narrative surrounding Bitcoin, which is crucial.
As of year-end, TMTG reportedly had cash or equivalent assets exceeding $700 million, in addition to the $250 million custody arrangement with Schwab. Following the announcement, the company’s stock (DJT) increased by approximately 5.6%.
Despite the positive news, the crypto markets, including Bitcoin, continued their retreat. Even the official Trump meme coin (TRUMP) was unaffected by the news, with its price falling by 6% on the announcement day.
Bitcoin markets also remained unresponsive, with the asset dipping to a low of $95,800 before a slight recovery to $97,000. Meanwhile, spot BTC ETFs in the US experienced an outflow of $140 million following two days of inflows.
