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The big news out of the exchange traded funds industry Thursday was that none other than President Trump himself wants to get into the business and the plans include a bitcoin ETF.
Trump Media and Technology Group Corp. (Nasdaq: DJT) ("TMTG"), the president’s eponymous social media company, announced it has filed trademark applications for three ETFs and three separately managed account (SMA) offerings under the Truth.Fi brand.
The ETFs are the Truth.Fi Made in America ETF, the Truth.Fi U.S. Energy Independence ETF and the Truth.Fi Bitcoin Plus ETF with the trio of SMAs planned to sport the same names sans the “ETF,” according to Trump Media & Technology Group.
The Energy Independence and Made in America ETFs are plays on two of the president’s marquee efforts from his first term in office and two of his most often mentioned campaign pledges. As is the case with all politicians, the extent to which the new president makes good on those promises remains to be seen, but at the very least, investors have new avenues with which to tap into those efforts.
Some Credibility Behind Trump ETFs, SMAs
There’s no denying that Trump has his share of critics, some of which are likely to assert TMTG’s ETFs will easily make it through the Securities and Exchange Commission (SEC) approval for no other reasons than that he’s president and appointed Chair Paul Atkins.
Criticism doesn’t always speak to legitimacy. TMTG’s financial services and fintech arm has $250 million in backing and that capital is custodied with Charles Schwab. Schwab is also working with TMTG on the aforementioned SMAs.
“Additionally, the company has signed a services agreement and a licensing agreement with an affiliate of Yorkville Advisors,” according to a statement. “Subject to necessary approvals, Yorkville will act as the Registered Investment Advisor for the new financial vehicles, playing a lead role in constructing the products and shepherding them through the regulatory process.”
New Jersey-based Yorkville has been in business for more than two decades and has invested in companies across the energy, electric vehicle, healthcare, materials and technology industries.
Trump Bitcoin ETF Not Surprising
Like him or not, Trump has discussed bitcoin and cryptocurrency more than any other candidate or president. With that in mind, the filing for the Truth.Fi Bitcoin Plus ETF isn’t at all surprising. How successful the ETF is remains to be seen.
TMTG CEO and Chairman Devin Nunes, a former congressman from California, said the firm will evaluate “a range of ways to differentiate our products, including strategies related to Bitcoin.”
That’s a must because the established bitcoin ETFs on the market aren’t just prolific asset gathers. They bear brands, such as Fidelity, iShares, VanEck and WisdomTree, that advisors and investors know and trust. So for the Trump bitcoin ETF to be successful, it must stand out and do so beyond ties to the president.
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