Trump Media Announces $250M Crypto and ETF Investment Strategy

Trump Media Group (TMTG), the company behind Truth Social, has announced its expansion into financial services with the launch of Truth.Fi.

The new fintech platform will focus on crypto investments, exchange-traded funds (ETFs), and separately managed accounts (SMAs). The company’s board has approved up to $250 million in investments, with Charles Schwab acting as custodian and investment advisor.

Truth.Fi to Invest in Bitcoin, ETFs, and SMAs

TMTG is not only growing its social media and streaming services but it is also entering the financial services sector. Truth.Fi will invest in Bitcoin, ETFs and SMAs, given that it currently has $700m cash on its balance sheet. The company aims to create special investment portfolios focused on the American growth sectors, manufacturing, and energy.

According to TMTG’s CEO Devin Nunes, the company aims to create a new decentralized financial system. He said,

”We started with a free speech social network, then launched an ultra high definition TV streaming service and now we are expanding into investment products and financial technology.”

The company plans to offer financial products and services that support the company’s mission of fighting censorship and debanking.

Trump Coins Continues to Dip Despite Announcement

However, even after the launch of Truth.Fi, TRUMP memecoin has not seen any gains. The Official Trump (TRUMP) token has been experiencing price fluctuations with the current price being $27.59, this is a 2.98% decline within the last one day.

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The token’s price has given quite the swings; the lowest price recorded within the day was $26.41 while the highest price was $28.40.

Nonetheless, the price has greatly fluctuated recently, and TRUMP has lost 63.54% of its value since it reached its all-time peak of $75.35 a share just ten days ago on January 19, 2025.

Regulatory Scrutiny and Potential Conflicts of Interest

Ethics regulators have expressed concern that TMTG’s entry into the financial services sector may lead to a number of conflicts of interest. Some critics even think that the US President is capable of influencing the regulation of the cryptocurrency markets thus affecting his own company’s investments.

“These business moves create even more opportunities for conflicts of interest,” said Delaney Marsco of the Campaign Legal Center. She mentioned that Trump’s appointees will have control over guidelines concerning crypto assets that may influence the Truth.Fi’s investments.

Trump had earlier transferred his interest in Trump Media to a revocable trust and his son, Donald Trump Jr., was the sole trustee. But in an interview on Friday, former White House ethics lawyer Richard Painter said the structure in itself does not eliminate conflict of interest. He also noted that Trump’s impact on the crypto policies may lead to asset hyperbole and create threats to financial markets.

Truth.Fi and Its Market Influence and Future Possibilities

The company has plans to introduce investment products of Truth.Fi by the end of 2025 subject to necessary permits. Charles Schwab Cooperation is an explicit approach to managing assets, which means that the company wants to balance traditional assets with cryptocurrency exposure.

The expansion of Truth.Fi as cryptocurrency adoption continues will help in increasing the recognition of Bitcoin and other digital assets in the institutional financial sector. This action is consistent with Trump’s approach to the crypto sphere as his administration keeps supporting positive blockchain regulation.

Interestingly, the regulatory issues apart, the entry of TMTG into the financial services is a strategic move with Truth.Fi as a potential major player in the overlap of crypto, ETFs and conventional investing. The investment community will be keen to see how Truth.Fi responds to the regulatory environment and industry dynamics in the next few months.