Trump Media and Technology Group (TMTG), a media company that operates the Truth Social network, has filed plans with the US Securities and Exchange Commission (SEC) to launch an Exchange-Traded Fund (ETF).
The Truth Social Bitcoin and Ethereum ETF will have 75% of its assets in Bitcoin and the remaining quarter in Ethereum. If approved by the SEC, the shares will be available on NYSE Arca, the exchange that hosted two thirds of the listed ETFs in the US, according to 2024 data.
TMTG will generate revenue through dividends derived from its shareholding in the ETF and from the fees paid by all the other shareholders, according to the filing. ETF fees are typically taken out of dividend payments.
Driving Crypto
This support for crypto in Trump’s second term – in stark contrast to his earlier stance when he said cryptocurrencies were based on “thin air” – is playing a significant role in driving the sector forwards, both in market and regulatory developments.
The President’s family business is continuously broadening and deepening its immersion into the crypto world. The ETF initiative comes weeks after TMTG raised close to $2.5 billion to buy Bitcoin. The family portfolio includes Trump NFTs, a meme coin, a stake in the new bitcoin mining outfit American Bitcoin and World Liberty Financial, a decentralized platform that also issues a US dollar–pegged stablecoin.
“America First”
Crypto.com will act as the Truth Social ETF's Bitcoin and Ether custodian and prime execution agent, as well as staking and liquidity provider, with Yorkville America Digital as the sponsor of the ETF. The three companies signed a binding agreement in April, when TMTG CEO and Chairman Devin Nunes said, “[We] look forward to bringing ETFs to the market for investors who believe both the American economy and digital assets are poised for tremendous growth.”
