An investment firm with ties to U.S. President Donald Trumpโs sons, Eric and Donald Trump Jr., is putting some of its excess cash into a spot bitcoin exchange-traded fund (ETF) โ an unusual twist on the increasingly popular strategy of holding bitcoin as a corporate reserve.
Dominari Holdings (DOMH), located in the Trump Tower in New York City, made headlines last month after the Trump brothers joined its 58-year-old board of advisors and became investors.
In an earnings report on Friday, it announced that it would adopt a bitcoin reserve strategy and invest a portion of its cash reserves into BlackRockโs iShares Bitcoin Trust (IBIT), the largest spot bitcoin ETF on the market.
According to the report, Dominari has committed $2 million to buy shares of IBIT as of now. The stock has a market cap of about $70 million and has fallen more than 9% on Fridayโs trading.
Most companies that adopt a bitcoin reserve strategy buy the cryptocurrency outright and self-custody it or use a custodian. Dominari is instead gaining exposure through a regulated exchange-traded fund, a move that may appeal to firms looking for easier compliance and cleaner accounting.
The move isnโt surprising, given Donald Trump Jr.โs interest in crypto. The presidentโs son is involved in many crypto projects and has become an unofficial spokesperson for his fatherโs enthusiasm.
Just earlier this week, World Liberty Financial (WLFI), the financial protocol backed by President Donald Trump and his family, pitched its own stablecoin at a crypto event in Washington.
