Trump's Truth Social files for bitcoin ETF as crypto push escalates

Trump's Truth Social files for bitcoin ETF as crypto push escalates

Donald Trump's media business has filed to introduce a bitcoin exchange-traded fund (ETF) as it looks to capitalize on growing interest in digital currencies and a regulatory environment increasingly influenced by Trump administration policies. The ETF, known as the Truth Social Bitcoin ETF, was filed Thursday and would hold the bitcoin directly, trading shares on NYSE Arca, said a filing with the US Securities and Exchange Commission, the Financial Times said.

The ETF will be run by Yorkville America Digital, a Florida company that bills itself as "America-first." If successful, the fund would put Trump Media & Technology Group (TMTG) in competition with established giants such as BlackRock and Fidelity, whose respective bitcoin ETFs already hold tens of billions of dollars.

Trump's crypto flip-flop and regulatory influence

Having previously been a vocal bitcoin critic, Trump is now championing digital currencies as a central component of his second-term economic agenda. His administration quickly dismantled Biden-era crypto regulations, and the SEC—now led by crypto supporter Paul Atkins—has abandoned several enforcement actions targeting digital asset companies. The pro-crypto shift tracks with Trump's public declarations to make America the "crypto capital of the world."

Trump has also taken on personal affinities for cryptocurrencies. He has promoted a Trump-branded memecoin ($TRUMP), thrown a gala fundraiser for large token holders, and now frames his media and financial enterprises as being crypto-friendly. TMTG in late May reported a $2.5 billion raise to build a "bitcoin treasury.

Trump's sons have been vocal proponents of the approach. Donald Trump Jr., a member of the TMTG board, spoke to a Las Vegas crypto conference that cryptocurrency was "cheaper," "faster," and "more transparent" than fiat currencies. Eric Trump also made an appearance at the event, doubling down on the family's investment in developing digital infrastructure through their financial pursuits.

But their increased involvement in the crypto sector has drawn closer scrutiny. Trump Jr. earlier this week distanced the family from a separate Trump-branded bitcoin trading app, making it clear that the Trump Organization had nothing to do with it. Nevertheless, he did confirm that World Liberty Financial—a crypto firm financially supported by the Trump family—would issue an official digital wallet shortly.

Investor scepticism and market impact

In spite of the media hype, the ETF proposal caused TMTG shares to sell off. The shares declined by 8% on Thursday amid public jousting between Trump and Elon Musk. The shares of the company, which trade under the symbol DJT, have declined 25% year-to-date in the context of overall volatility related to political events and Trump's growing hold on US tech and crypto policy.

Market analysts are also skeptical of the ETF's long-term future. "It's extremely unlikely that products like the Truth Social Bitcoin ETF accumulate long-term assets," stated ETF analyst Dave Nadig, referring to widespread dominance by well-established funds such as BlackRock's $69 billion bitcoin ETF.

A crowded crypto space with politicized overtones

The new ETF is up against a crowded market, with dozens of spot bitcoin funds already available. But Trump's political influence and the administration's laissez-faire attitude toward crypto can provide Truth Social's product with special allure among retail investors sympathetic to the president's America First agenda.

Nevertheless, the action contributes to the tangled nexus of politics, media, and finance now circling Trump's brand. With the SEC still to decide on the application, the fate of the Truth Social Bitcoin ETF—and its potential as a flagship product for MAGA-aligned finance—is uncertain.