Trump Media & Technology Group (DJT) Files to Launch Bitcoin ETF

Trump Media & Technology Group (DJT) is taking a major step into the cryptocurrency market by filing an S-1 form with the SEC in order to launch a new exchange-traded fund (ETF). The ETF, called the Truth Social Bitcoin ETF, will trade on the NYSE Arca exchange (ICE) and use the Truth Social brand. This move follows Trump Media’s announcement earlier this year that it would expand into financial services with a fintech platform called Truth.Fi. It is worth mentioning that last week, the company announced plans to create a $2.44 billion bitcoin treasury by issuing new stock to fund it.

The strategy is similar to other firms that have added bitcoin to their balance sheets, which have mostly been inspired by Michael Saylor’s crypto-focused company, Strategy (MSTR). Interestingly, under President Trump, the administration has taken a more crypto-friendly stance compared to the Biden administration. Trump also announced a national strategic bitcoin reserve and appointed David Sacks as Crypto Czar. In addition, Paul Atkins, who is a well-known crypto attorney, was chosen to lead the SEC, which has since dropped investigations into firms like Coinbase (COIN) and Robinhood (HOOD).

Notably, the Truth Social Bitcoin ETF will be managed by Yorkville America Digital, an affiliate of Yorkville Advisors, and will track the price of bitcoin. Moreover, Crypto.com will act as both the custodian and liquidity provider, which will make it responsible for handling the storage and trading of the cryptocurrency. Nevertheless, shares of Trump Media stock are down at the time of writing, along with the price of bitcoin.

Is DJT Stock a Good Buy?

Using TipRanks’ technical analysis tool, the indicators seem to point to a negative outlook for DJT stock. Indeed, the summary section pictured below shows that three indicators are Bullish, compared to six Neutral and 13 Bearish indicators.

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