Sign in Subscribe

Truth Social Files for Dual Bitcoin and Ether ETF, Revealing Trump's Crypto Windfall

Truth Social Files for Dual Bitcoin and Ether ETF, Revealing Trump's Crypto Windfall

Truth Social, Donald Trump's social media platform, has filed for a dual Bitcoin and Ether Exchange Traded Fund (ETF), signaling a significant expansion into the cryptocurrency market. This move follows the SEC's recent approval of Trump Media and Technology Group's (TMTG) $2.3 billion Bitcoin treasury deal, further solidifying the former president's growing involvement in digital assets.

Truth Social's Bold Crypto ETF Play

Truth Social, under the umbrella of Trump Media and Technology Group (TMTG), has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for a dual Bitcoin and Ether ETF. This new ETF, sponsored by Yorkville America Digital, aims to provide investors with direct exposure to both Bitcoin (BTC) and Ether (ETH) without the complexities of direct crypto investment. Crypto.com will serve as the ETF's custodian and liquidity provider, allocating 75% of capital to Bitcoin and 25% to Ether.

  • The ETF will hold Bitcoin and Ether directly.
  • Crypto.com is designated as the custodian and liquidity provider.
  • The fund seeks to simplify crypto investment for traditional investors.

This filing builds on TMTG's earlier intent to launch a standalone Bitcoin ETF, demonstrating an accelerated push into the crypto space. The inclusion of Ether aligns with the Trump family's existing crypto activities, as their backed DeFi project, World Liberty Financial, holds 96% of its assets on the Ethereum blockchain.

Trump's Expanding Crypto Empire and Windfall

Donald Trump's financial disclosures reveal a substantial windfall from his crypto ventures. His branding empire and personal crypto holdings generated tens of millions of dollars last year, with World Liberty Financial alone netting him $57.4 million. This income was primarily realized through token sales from his 15.75 billion governance tokens in the venture.

Key financial highlights include:

  • World Liberty Financial Income: $57.4 million from token sales.
  • Personal Crypto Holdings: Estimated between $1 million and $5 million.
  • Other Digital Asset Income: Over $1 million from NFT licensing fees.

World Liberty Financial, launched in September 2024, focuses on DeFi and dollar-pegged stablecoins, positioning itself as a challenger to traditional finance. The project has successfully raised approximately $550 million through public token sales, attracting significant investments from major crypto players like Tron founder Justin Sun and Web3Port.

SEC Approvals and Future Outlook

The SEC recently declared effective TMTG's S-3 registration statement for its $2.3 billion Bitcoin treasury deal. This approval allows TMTG greater flexibility for future growth plans, although the company currently has no immediate plans to issue securities under this deal. TMTG had previously confirmed a $2.5 billion capital raise to purchase Bitcoin, viewing it as an "apex instrument of financial freedom."

The approval of TMTG's Bitcoin treasury deal and the filing for the dual Bitcoin and Ether ETF underscore a growing trend of mainstream adoption of cryptocurrencies. If approved, Truth Social's ETF would join a burgeoning market of crypto ETFs, including those managed by industry giants like BlackRock and Fidelity, which collectively manage $131 billion in Bitcoin ETFs alone. This strategic move by Truth Social positions it at the forefront of integrating digital assets into traditional financial products.

Sources