Trump's New Move in the Crypto Space! Social Media Platform to Launch Truth Social Bitcoin ETF

TradingKey - After announcing plans to raise more than $2 billion to purchase bitcoin, pro-crypto President Donald Trump has made another move into the cryptocurrency sector. On Tuesday (the 3rd), the New York Stock Exchange filed an application with the U.S. Securities and Exchange Commission (SEC) for a Truth Social Bitcoin ETF.

On Tuesday, the New York Stock Exchange, on behalf of Yorkville Capital Management—a digital asset management firm—submitted a Form 19b-4 to the SEC proposing the establishment of a fund that tracks the price of bitcoin. Yorkville is a partner of Trump Media & Technology Group (DJT), the parent company of Trump’s social media platform, Truth Social.

Following the filing, the SEC will have 45 days to decide whether to accept, reject, or delay the application. If ultimately approved, this fund would join the growing list of bitcoin ETFs, which currently includes 11 similar products in the market.

Bloomberg Senior ETF Analyst Eric Balchunas noted that on one hand, this is a relatively uncharted territory and reflects strong support for bitcoin from Trump's media company. On the other hand, it's a highly competitive fund space, where significant effort will be required to attract capital and liquidity.

During Trump’s second presidential term, his pro-crypto stance has been widely recognized. However, as the Trump family continues to expand its footprint in the crypto industry, many have raised concerns that Trump may be leveraging his position for personal financial gain, raising ethical questions.

At the time of writing, bitcoin had fallen 2.67% over the past seven days, trading at US$105,803.55.