Truth Social Files for Spot Bitcoin ETF, Signaling Trump Media’s Crypto Ambitions

Trump Media & Technology Group (TMTG), the parent company of the social media platform Truth Social, has taken a significant step toward entering the cryptocurrency investment space by filing for a spot Bitcoin exchange-traded fund (ETF). On June 3, NYSE Arca, a division of the New York Stock Exchange, submitted a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) to list the “Truth Social Bitcoin ETF,” designed to track the price of Bitcoin and provide retail investors with regulated exposure to the asset. The move follows TMTG’s recent crypto-related initiatives, including a $2.5 billion Bitcoin treasury plan and a partnership with Crypto.com, underscoring its growing focus on digital assets.

Details of the ETF Filing

The proposed Truth Social Bitcoin ETF, if approved, would operate similarly to existing spot Bitcoin ETFs launched in January 2024, which have collectively attracted over $130 billion in assets, according to data from Coinglass. The fund would track Bitcoin’s price through an index of constituent platforms, with Foris DAX Trust Company LLC, an affiliate of Crypto.com, named as the custodian for the fund’s digital assets. The filing requires two key documents: the 19b-4, submitted by NYSE Arca to propose a rule change, and an S-1 registration statement from the issuer, which has yet to be filed to finalize the proposal.

The ETF is part of a broader partnership announced in April between TMTG, Crypto.com, and Yorkville America Digital, aimed at launching a series of ETFs to be offered globally through major brokerage platforms and the Crypto.com app. While the filing does not specify a ticker or fee structure, it aligns with TMTG’s earlier trademark filings for investment vehicles under its “TruthFi” brand, including a “TruthFi Bitcoin Plus ETF.”

TMTG’s Broader Crypto Strategy

TMTG’s ETF filing builds on its recent crypto initiatives. Last week, the company announced a $2.5 billion fundraising effort to establish a Bitcoin treasury, following its January approval to invest up to $250 million of its cash reserves in Bitcoin and other crypto-related securities. In February, TMTG filed trademarks for six investment products, including those tied to Bitcoin and U.S. manufacturing sectors, under its TruthFi brand. TMTG recently introduced $TRUMP memecoins days before Donald Trump’s inauguration, a controversial decision that has drawn significant attention. Additionally, prior reports indicate that TMTG is exploring the launch of a new utility token and digital wallet for Truth Social.

However, TMTG’s Bitcoin ETF filing and broader crypto initiatives are not without challenges. Due to its ties to former President Donald Trump, TMTG’s crypto ventures face potential scrutiny over conflicts of interest. Trump, a major shareholder in TMTG, transferred his shares to a trust controlled by his son, Donald Trump Jr., before resuming his presidency. Critics argue that Trump’s connection to TMTG creates a conflict of interest with his presidential duties, accusing him of leveraging his position for personal gain.

Furthermore, TMTG’s ETF filing enters a highly competitive spot Bitcoin ETF market, dominated for over a year by 11 ETFs from leading asset managers like BlackRock, Grayscale, and Bitwise. Notably, BlackRock’s iShares Bitcoin Trust ETF (IBIT) manages $68.9 billion, accounting for over half of the total assets under management in the spot Bitcoin ETF sector. TMTG must navigate regulatory hurdles, market competition, and public scrutiny over its political ties to succeed in this crowded space. As the SEC reviews the filing, the crypto community will be watching closely to see if TMTG can deliver on its ambitious crypto agenda.