A financial firm associated with U.S. President Donald Trump’s sons, Eric and Donald Trump Jr., is channeling some of its surplus funds into a spot bitcoin exchange-traded fund (ETF) — a distinctive approach within the growing trend of utilizing bitcoin as a corporate asset.
Dominari Holdings (DOMH), based in Trump Tower in New York City, made headlines last month when the Trump brothers joined its 58-year-old board of advisors and became investors in the firm.
In a recent earnings announcement, the company revealed its plan to implement a bitcoin reserve strategy and allocate a portion of its cash reserves into BlackRock’s iShares Bitcoin Trust (IBIT), which is currently the largest spot bitcoin ETF available.
As noted in the report, Dominari has pledged $2 million to invest in IBIT shares at this time. The fund has a market capitalization of approximately $70 million and saw a decline of over 9% in Friday’s trading session.
Typically, corporations that adopt a bitcoin reserve strategy purchase the cryptocurrency directly and either self-custody it or utilize a custodian service. Dominari, however, is opting for exposure via a regulated exchange-traded fund, potentially making it more attractive for companies seeking simpler compliance and more straightforward accounting.
This decision aligns with Donald Trump Jr.’s keen interest in cryptocurrency. The president’s son is actively engaged in various crypto initiatives and has become a notable advocate for his father’s enthusiasm for the digital currency.
Just earlier this week, World Liberty Financial (WLFI), a financial protocol supported by President Trump and his family, proposed its own stablecoin during a crypto event held in Washington.