Key Takeaways
- Donald Trump-owned media and tech company TMTG has registered trademarks for Bitcoin-backed ETFs and SMEs that will be available under its newly formed financial services wing Truth.Fi.
- The company has filed applications with the SEC for the Truth.Fi Bitcoin Plus ETF and Truth.Fi Bitcoin Plus SMA. The funds’ assets will be managed by brokerage firm Charles Schwab, with Yorkville Advisors acting as the registered investment advisor for TMTG.
- Trump-backed DeFi company World Liberty Financial also announced plans to create a strategic crypto asset reserve. The firm has not provided details of the purpose or size of the reserve, but it currently holds $35 million worth of cryptocurrencies.
- This week, the President signed an executive order directing the Treasury and Commerce departments to create a sovereign wealth fund, which analysts say could include BTC as one of its investment assets. Trump’s Crypto Czar David Sacks also stated that establishing a Strategic Bitcoin Reserve is among their top priorities.
Trump Media and Technology Group (TMTG), a company founded by President Donald Trump, has announced trademark registrations for brand names associated with its forthcoming exchange-traded funds (ETFs) and separately managed accounts (SMAs) backed by Bitcoin (BTC).
TMTG is a Nasdaq-listed firm headquartered in Florida that operates the social media platform Truth Social and the Truth+ streaming service.
Donald Trump’s Financial Firm To Launch Bitcoin-Backed Investment Products
According to a February 6 press release, the tech company majority-owned by the US President, is planning to launch Bitcoin-based financial instruments under a new financial services arm Truth.Fi. The Truth.Fi Bitcoin Plus ETF and Truth.Fi Bitcoin Plus SMA will be managed by brokerage firm Charles Schwab.
Furthermore, Trump Media and Technology Group also reached an agreement with Yorkville Advisors to act as the Registered Investment Advisor to the financial products once they are launched. The Truth.Fi Bitcoin Plus ETF is subject to approval by the US Securities and Exchange Commission (SEC).
The upcoming launch of Truth.Fi and its Bitcoin-backed ETFs and SMAs represent a pivotal part of TMTG’s strategy to integrate financial services with its existing Truth Social and Truth+ platforms. The company plans to invest up to $250 million to support these initiatives and will work with Charles Schwab and Yorkville Advisors to develop new investment products that its CEO Devin Nunes says will help attract investors who align with Trump’s “America First” principles.
Nunez further articulated the company’s vision, stating that TMTG aims to provide investors a means to invest in American energy, manufacturing, and other areas that offer a “competitive alternative” to woke funds and de-banking problems that are found throughout the market.
Trump-Backed DeFi Company World Liberty Financial To Create Digital Asset Reserve
Meanwhile, World Liberty Financial, a Decentralized Finance (DeFi) project backed by President Trump, has announced plans to create a strategic reserve with the crypto assets it purchases. The project is famously supported by the President’s family, with his son Donald Trump Jr. appearing on stage alongside its co-founder Chase Herro at the Ondo Summit in New York on February 5.
Herro did not specify what the reserve funds would be used for or the size of it, but it is inspired by Trump’s idea of creating a US strategic Bitcoin reserve. The company reportedly holds approximately $35 million in various crypto assets, which is a 90% drawdown on its once sizeable treasury after recently moving out millions of dollars worth of tokens including Aave (AAVE), Ether (ETH), ENA, Chainlink (LINK), and Wrapped Bitcoin (WBTC).
Could US Sovereign Wealth Fund Pave The Way For Strategic Bitcoin Reserve?
Earlier this week, the President’s “Crypto Czar” David Sacks outlined the administration’s pro-crypto plans and confirmed that a Strategic Bitcoin Reserve is among its top priorities. On Monday, Trump signed an executive order to establish a sovereign wealth fund, a federally-owned investment vehicle designed to increase the government’s revenue through strategic asset investments.
Many analysts speculate Bitcoin could be one of the investment assets that could be included in the US sovereign wealth fund. The EO has directed the Treasury and Commerce departments to draw up a plan to monetize US government assets to support national interests. Trump also hinted at utilizing the funds to acquire strategic positions in energy and tech companies.
In an interview with the crypto publication The Block, CoinShares head of research James Butterfill pointed out that the two key figures responsible for creating the sovereign wealth fund – Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick – are “very pro-crypto” and are former Wall Street fund managers. He noted that including Bitcoin as part of the investment portfolio “makes sense”.
The CoinShares head added that the idea of a Bitcoin Strategic Reserve could come to life under the sovereign wealth fund plan. “Although strategic reserves are typically separate, in this case, the fund could serve dual purposes,” he said.
The Trump administration continues to explore opportunities to implement an accommodative regulatory environment for the crypto sector.
Mark Uyeda, the acting chairman of the Securities and Exchange Commission (SEC), has launched a crypto task force that will focus on establishing proper guidelines for cryptocurrencies while ensuring that existing and new companies in the field meet the proper agency requirements for offering related financial services.
At the time of writing, Bitcoin (BTC) is trading at $96,917 – down 1.43% in the last 24 hours.
