A recent move by Dominari Holdings, an investment firm with ties to U.S. President Donald Trump’s sons, Eric and Donald Trump Jr., has caught the attention of the financial world. The firm, located in the prestigious Trump Tower in New York City, made headlines last month when the Trump brothers joined its board of advisors and became investors.
In a recent earnings report, Dominari Holdings announced that it would be adopting a bitcoin reserve strategy by investing a portion of its cash reserves into BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot bitcoin ETF on the market. The firm has committed $2 million to buy shares of IBIT, which currently has a market cap of about $70 million.
What sets Dominari’s approach apart from other companies that have adopted a bitcoin reserve strategy is that they are gaining exposure through a regulated exchange-traded fund rather than buying the cryptocurrency outright and self-custodying it. This move may appeal to firms looking for easier compliance and cleaner accounting practices.
The decision to invest in a bitcoin ETF may not come as a surprise given Donald Trump Jr.’s interest in cryptocurrency. The president’s son has been involved in various crypto projects and has become an unofficial spokesperson for his father’s enthusiasm for the industry.
Just this week, World Liberty Financial (WLFI), a financial protocol backed by President Donald Trump and his family, introduced its own stablecoin at a crypto event in Washington. The Trump family’s involvement in the cryptocurrency space underscores the growing interest and potential of digital assets in the financial world.
Overall, Dominari Holdings’ decision to invest in a bitcoin ETF reflects a growing trend among companies to diversify their cash reserves and embrace digital assets. As the cryptocurrency market continues to evolve and gain mainstream acceptance, more firms may follow suit and explore ways to incorporate digital currencies into their investment strategies.