Trump Crosses the Line: Bitcoin ETF Under Truth Social Sponsorship

The financial market is in turmoil. While Bitcoin shows a moderate decline, Donald Trump, through his media company Truth Social, has announced plans to establish an Exchange Traded Fund (ETF) for the digital currency. This move, which coincides with Ethereum’s strengthening trend, raises fundamental questions regarding its economic and regulatory implications. An in-depth analysis of the current situation reveals discrepancies between market performance and investor expectations, and among other things, highlights the contradictions in positions within the crypto community itself.

Bitcoin and Ethereum: Current Status in the Crypto Market

Bitcoin, the world’s largest cryptocurrency, has recorded a moderate decline to $105,440, with trading volume falling by 1.2% over the past 24 hours. Nevertheless, the currency continues to hold above the $100,000 level, a peak maintained since May, when it surged above $111,000. This slight downturn is seen by experienced investors as a healthy correction, typical of markets that have experienced sharp rises and require rebalancing. In contrast, Ethereum has shown a surprising 1.1% increase and is currently on its longest streak of inflows in 2025, indicating growing investor interest in this currency. These figures present a complex picture of a volatile yet resilient crypto market, where different trends operate in parallel, and even moderate declines do not cause panic.

The Plan to Establish a Bitcoin ETF: A Surprising Initiative from the Political Arena

The most significant, and unexpected, development comes from the political sphere. Trump Media & Technology Group, owned by President Donald Trump, has announced its plans to establish a Bitcoin Exchange Traded Fund (ETF) under the Truth Social brand. This announcement, part of the company’s broader strategy to expand into financial services, marks a significant entry of a senior political figure into the crypto world. NYSE Arca, one of the New York Stock Exchange branches that handles most ETF trading, has already filed a formal application to register the ETF, which will be called “Truth Social Bitcoin ETF” and will track Bitcoin’s price, offering investors a simpler way to gain exposure to the asset without directly holding it. The fund, based on a partnership with Crypto.com, will join the competitive market of “physical” Bitcoin funds that has expanded to approximately $130 billion since their launch in January 2024. This initiative complements the $2.5 billion “Bitcoin Treasury” program recently unveiled by the company, indicating an aggressive push into the crypto space.

Analyzing the Current Situation: Expectations, Criticisms, and Political Involvement

Despite the potential inherent in this ETF, opinions among analysts and industry leaders are divided. On one hand, analysts note that recent regulatory actions, including attempts to bring order to the stablecoin market, are positioning Bitcoin at the center of the financial system. They argue that this development could encourage a new wave of investments from large financial institutions and private investors, thereby strengthening Bitcoin’s status as a legitimate asset. Historical data supports this thesis: Bitcoin has surged by about 50% over the past year, an achievement that surpasses leading stock indices and even gold. This growth is attributed, in part, to expectations that a Trump administration would adopt a crypto-friendly policy, unlike previous administrations that viewed the sector with suspicion.

On the other hand, voices of criticism are growing louder within the industry. Danny Scott, head of the crypto trading company CoinCorner, has severely criticized the direction the former president is taking. Scott argues that while the industry appreciates the lenient regulatory approach, Trump is “starting to cross red lines that the industry doesn’t necessarily want to cross.” He added that Trump and his team “may truly believe in the future of Bitcoin, but it seems to me that they are leveraging their political influence for personal projects that primarily serve their own interests,” referring to both the new ETF deal and the promotion of the $TRUMP meme coin, which recently gained significant traction. This incident adds to Trump’s controversial ties with the crypto world, which critics argue constitute a conflict of interest with his presidential role. This is particularly evident given the uproar surrounding the launch of an unauthorized “Official Trump Wallet,” which was denied by his family members, indicating communication and management chaos among the various Trump-related entities in the crypto space.

Contrasts Between Data and Performance: From Risk Asset to Safe Haven

The traditional definition of crypto as “risk assets” that tend to decline during periods of economic stress or increasing uncertainty is currently being tested. Recently, Bitcoin has surprisingly behaved like a safe haven asset, similar to gold. This change in trading patterns indicates market evolution and growing recognition of Bitcoin as a legitimate financial alternative. The gap between theoretical expectations and actual performance highlights the increasing complexity of the crypto market and its ability to surprise.

However, it is important to remember that the path is still fraught with potential obstacles. Pending legislation to regulate crypto could dramatically impact the market, and digital currencies are highly sensitive to changes in economic policy. Specifically, if the new import tariffs signed by Trump (raising tariffs on steel and aluminum to 50%) lead to price increases, the Federal Reserve might maintain high interest rates – a situation that typically harms crypto. This contradiction between potential and risk highlights the inherent uncertainty in this market, even when senior political figures choose to enter it.

Conclusion

Donald Trump’s announcement of a Bitcoin ETF through his media company marks a significant milestone in the crypto world. It indicates growing recognition of digital currencies but also exposes internal tensions within the industry, particularly regarding questions of conflict of interest and personal motives. While Bitcoin and Ethereum demonstrate resilience and adaptability, the overall market remains sensitive to regulatory and political changes. The disparity between impressive quantitative data and the potential implications of political moves highlights the complexity and evolving dynamics of the crypto market, leaving investors and the public in anticipation of future developments.