Episode 1899: “Trump Is Going to Launch a Bitcoin Plus Exchange-Traded Fund”

Podcast: Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
Host: Justin Verrengia
Release Date: February 7, 2025

1. Introduction

In episode 1899 of Crypto News Alerts, host Justin Verrengia (JV) delves into significant developments in the cryptocurrency landscape, focusing on Bitcoin's market movements, legislative advancements across U.S. states, institutional investments, and a groundbreaking announcement involving former President Donald Trump’s media firm.

2. Market Update

JV opens the episode with a detailed analysis of the current cryptocurrency market dynamics:

• Bitcoin (BTC): Briefly touched green, with a fleeting push above the $100,000 mark before correcting to $96,500, marking a 0.5% increase for the day.

  “Coin360 pulled up Bitcoin flip back into green... we did recapture 100,000 but it was short-lived this morning.” [00:31]

• Ethereum (ETH): Slight decline of 2%, trading just above $2,600.

• Other Cryptos: XRP, Solana (SAL), Tron (BTRX), and Stellar (XLM) showed gains.

• Market Metrics: Total crypto market cap stands at $3.15 trillion, with Bitcoin dominance at 60.8% and Ethereum at 10.1%.

  “We have roughly 129 billion worth of volume just in the past 24 hours...” [00:31]

• Technical Analysis: JV discusses Bitcoin’s potential to break higher resistance levels, citing an RSI reading near 108 and the importance of surpassing the $102,000 mark for bullish momentum.

  “Dan Crypto trades that bitcoin breaking out now a higher low made now needs to break that local high of 102 to leave this area behind.” [00:31]

3. Latest News Headlines

a. Tornado Cash Co-Founder Released

JV shares the news of Alexi Per, co-founder of Tornado Cash, being released from prison, signaling a potential end to the “war on crypto.”

“Tornado Cash co founder Alexi Per has been released from prison. The war on crypto is over.” [12:45]

b. Maryland’s Strategic Bitcoin Reserve Act Introduced

Maryland State Delegate Kaylin Young has introduced the Strategic Bitcoin Reserve Act, marking Maryland as the 17th state in the U.S. to propose such legislation. This act aims to allocate up to 10% of excess state reserves into Bitcoin and other qualifying digital assets.

“Kentucky’s bill comes a week after the State of Illinois has announced a plan for Bitcoin reserve bill that a proposed minimum Bitcoin holding strategy of five years.” [16:30]

c. BlackRock Increases Stake in Michael Saylor's Strategy B

BlackRock has bolstered its investment in Michael Saylor’s Strategy B to 5%, reinforcing institutional confidence in Bitcoin. Strategy B, formerly MicroStrategy, holds 471,107 BTC worth approximately $48 billion.

“Black Rock as we know, is the world's largest asset manager... increase its stake in Sailor Strategy, reinforcing its growing institutional interest in the biddy.” [08:20]

d. Legislative Moves in Kentucky, Missouri, and Utah

• Kentucky: Introduces HB376, allowing up to 10% of excess state reserves to be invested in Bitcoin.
• Missouri: HB1217 proposes a strategic reserve fund for Bitcoin, with a mandatory five-year holding period for the acquired BTC.
• Utah: HB230 has passed the House and awaits Senate approval, positioning Utah to become the first state with an official Bitcoin reserve.

“Kentucky has become the 16th US state to introduce legislation aimed at establishing a Bitcoin reserve...” [22:10]

4. Featured Story: Trump Media Firm to Launch Bitcoin ETF

The centerpiece of this episode is the announcement that Trump Media and Technology Group (TMTG) plans to launch a Bitcoin Plus Exchange-Traded Fund (ETF), potentially making it the first ETF issuer with ties to a sitting or former U.S. President.

• Details of the ETF Launch:

  • Branding: Operated under the fintech brand Truth Phi.
  • Types of Funds: Includes Made in America ETFs, U.S. Energy Independence ETFs, and the Bitcoin Plus ETF.
  • Custody and Guidance: Up to $250 million in custody by Charles Schwab, with Yorkville Advisors guiding the initiatives.

  “Truth Phi plans to offer the Made in America U S energy independence and Bitcoin plus ETFs as well as separately managed accounts...” [30:15]

• Market Impact: The announcement led to a 6% rise in TMTG’s stock price. However, Bitcoin's market showed a retrace with the asset dipping below $100,000 shortly after the initial spike.

  “Despite Trump’s brand, these will likely be microscopic and asset gathering compared to the IBIT which is the BlackRock ETF...” [38:50]

• Community Reaction: Mixed responses were observed, with Donald Trump’s official meme coin declining by 6% amidst the news, indicating skepticism or limited direct impact from the ETF announcement.

  “Despite Trump's brand, these will likely be microscopic and asset gathering compared to the IBIT which is the BlackRock ETF and FBTC which is the Fidelity Wise one.” [38:50]

• Analyst Insights: Eric Baluna from Bloomberg highlighted the strategic move, suggesting that Trump’s entry into the ETF space could mainstream Bitcoin further, despite current market volatilities.

  “Truth Phi plans to offer the Made in America U S energy independence and Bitcoin plus ETFs as well as separately managed accounts...” [30:15]

5. Conclusions and Insights

JV wraps up the episode by emphasizing the rapid adoption and legislative support for Bitcoin across the United States, signaling a robust institutional and governmental embrace of cryptocurrency. The introduction of Bitcoin reserve bills in multiple states showcases a trend towards legitimizing and integrating digital assets into traditional financial frameworks.

The potential launch of a Bitcoin Plus ETF by Trump’s media firm represents a noteworthy development in the crypto ETF landscape, potentially paving the way for increased mainstream investment and broader acceptance.

“But adoption isn't just about the price, it's about the infrastructure. Kentucky will need robust custody solutions, cybersecurity measures and clear exit strategy if things go south.” [25:00]

Overall, the episode underscores a pivotal moment for Bitcoin, marked by significant institutional investment, legislative advancements, and innovative financial products that could shape the future of cryptocurrency in the global financial system.

Notable Quotes

• JV on Bitcoin’s Technicals:

  “Dan Crypto trades that bitcoin breaking out now a higher low made now needs to break that local high of 102 to leave this area behind.” [04:50]

• Andy Lyon on Kentucky’s Bill:

  “If Kentucky moves forward, it creates a road map for the others to follow...” [19:45]

• TMTG CEO Devin Nunez on the ETF:

  “We're exploring a range of ways to differentiate our products, including strategies related to Bitcoin.” [35:20]

Final Thoughts

Episode 1899 provides a comprehensive overview of the evolving cryptocurrency ecosystem, highlighting significant market trends, legislative efforts, and pioneering financial products. Justin Verrengia effectively encapsulates the multifaceted developments, offering listeners valuable insights into the future trajectory of Bitcoin and the broader crypto market.

Stay informed and continue to HODL!
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