An investment firm with connections to the sons of U.S. President Donald Trump, Eric and Donald Trump Jr., is allocating some of its extra funds to a spot bitcoin exchange-traded fund (ETF) – a unique approach to the popular trend of holding bitcoin as a corporate reserve.
Dominari Holdings (DOMH), based in the Trump Tower in New York City, made headlines last month when the Trump brothers joined its 58-year-old advisory board and became investors.
In an earnings report released on Friday, Dominari announced its decision to implement a bitcoin reserve strategy and invest a portion of its cash reserves into BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot bitcoin ETF available.
As per the report, Dominari has committed $2 million to purchasing IBIT shares. The ETF has a market capitalization of about $70 million and experienced a more than 9% decline in Friday’s trading.
While most companies adopting a bitcoin reserve strategy typically purchase the cryptocurrency directly and either self-custody it or use a custodian, Dominari is opting to gain exposure through a regulated exchange-traded fund. This approach may be appealing to businesses seeking simplified compliance and clearer accounting.
The decision is not surprising, considering Donald Trump Jr.’s interest in the crypto space. The president’s son is actively involved in various crypto projects and has become an informal spokesperson for his father’s enthusiasm.
Just this week, World Liberty Financial (WLFI), the financial protocol supported by President Donald Trump and his family, introduced its own stablecoin at a crypto event in Washington.
