A financial firm connected to U.S. President Donald Trump’s sons, Eric and Donald Trump Jr., is allocating some of its surplus funds into a spot bitcoin exchange-traded fund (ETF). This move represents a unique approach to the growing trend of corporations holding bitcoin as part of their reserves.
Dominari Holdings (DOMH), situated within Trump Tower in New York City, garnered attention last month when the Trump brothers joined its 58-year-old advisory board as investors.
In its earnings report released on Friday, the firm revealed its plans to embrace a bitcoin reserve strategy by investing a portion of its cash reserves in BlackRock’s iShares Bitcoin Trust (IBIT), which is the largest spot bitcoin ETF available.
The report disclosed that Dominari has so far committed $2 million to purchase shares of IBIT. Currently, the stock boasts a market capitalization of approximately $70 million, having dropped over 9% during trading on Friday.
Unlike most companies pursuing a bitcoin reserve strategy that typically buy and self-custody the cryptocurrency or utilize a custodian, Dominari is opting for exposure through a regulated exchange-traded fund. This choice may be attractive to businesses seeking easier compliance and streamlined accounting.
This development aligns with Donald Trump Jr.’s known interest in cryptocurrency, as he is actively involved in multiple crypto ventures and has become a prominent advocate of his father’s enthusiasm for the sector.
Earlier this week, World Liberty Financial (WLFI), a financial protocol backed by President Donald Trump and his family, showcased its own stablecoin at a crypto event held in Washington.
