Deng Tong, Jinse Finance
On June 16th, the Trump family's business empire made two notable moves - the Trump Group announced the launch of Trump Mobile, and Bitcoin and Ethereum ETF applications were submitted to the SEC.
What exactly is Trump Mobile? Can the "Made in America" dream be realized? Why did Truth Social submit an ETF registration statement? Is Trump making money using his presidential title? What industries is Trump earning from?
I. Trump Business Empire Adds New Territory - Trump Mobile Emerges
1. Trump Mobile Introduction
The Trump Group plans to sell a golden "Made in America" smartphone for $499. According to the TRUMP official website, Trump Mobile will provide 5G services through three major mobile carriers. The core of Trump Mobile is its flagship product The 47 Plan, costing only $47.45 per month (hinting at Trump being the 47th and 45th president). Users will receive the following additional benefits:
Unlimited calls, texts, and data;
Comprehensive device protection;
24/7 roadside assistance through Drive America;
Telemedicine services, including virtual medical care, mental health support, and convenient prescription drug ordering and delivery;
Free international calls to over 100 countries, including many with US military bases, to help honor families of soldiers serving abroad without contracts or credit checks.
Trump Group Executive Vice President Donald Trump Jr. stated: "I am very excited to enter this new digital realm, and hardworking Americans deserve affordable wireless services that reflect their values and provide reliable, trustworthy quality. We are especially proud to offer free long-distance calls for our military and their families - because soldiers serving overseas should always be able to stay connected with their loved ones back home."
2. Can the "Made in America" Dream Be Realized?
Besides the gimmick of free long-distance calls for military personnel, the phone is also tied to the "Made in America" concept. But can his idea really be implemented?
Upon returning to the White House, Trump has been planning to bring manufacturing back to the United States. He even went so far as to use trade wars to encourage US businesses to reduce dependence on foreign goods and return to domestic manufacturing to "revive American industry" and realize the dream of "Making America Great Again".
Supply chain experts believe that producing such a phone using entirely American components is "almost impossible".
Professor Tinglong Dai from Johns Hopkins University said: "There isn't even a working prototype. This is highly unlikely. You would need to perform miracles, have economies of scale, and have sustainable demand for such a product."
Leo Gebbie, an analyst at CCS Insight, pointed out that the US currently "completely lacks the high-tech supply chain needed for smartphone assembly", especially unable to release a phone by August. "However, this device could potentially be assembled in the US with parts imported from abroad. This might be the most likely outcome."
II. Truth Social Launches ETF Invasion - BTC and ETH ETF Registration Statement Submitted to SEC
1. Truth Social Submits BTC and ETH ETF Registration Statement
Trump's social media platform Truth Social has submitted an S-1 form to the US Securities and Exchange Commission to launch a dual Bitcoin and Ethereum Exchange Traded Fund (ETF), sponsored by asset management company Yorkville America Digital.
The trust aims to provide investors with Bitcoin and Ethereum investment opportunities by offering stocks backed by crypto assets, thereby eliminating the complexities of direct investment.
According to the documents submitted to the SEC, 75% of the funds are directly allocated to Bitcoin, with the remaining 25% allocated to Ethereum.
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The prospectus states that these stocks are supported by BTC and ETH held by the trustee Foris DAX Trust Company, which does business under the name Crypto.com.
According to the document, the ETF stocks are intended to be listed on NYSE Arca.
Although Truth Social has officially confirmed Crypto.com as its dedicated crypto custody provider, the company has not yet finalized details of the upcoming ETF, such as the fund's ticker and cash custodian.
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2. Who Will Benefit?
The 25% Ethereum allocation is consistent with the Trump family's crypto activities. According to Arkham data, the DeFi project supported by the family, World Liberty Financial, has 96% of its assets on the Ethereum blockchain. Since World Liberty Financial highly values Ethereum, this move aligns with the Trump family's crypto interests.
If approved, the Truth Social Bitcoin ETF and Truth Social Bitcoin & Ethereum ETF will enter a competitive market already dominated by a few prominent asset management companies like BlackRock, whose iShares Bitcoin ETF holds $72.5 billion in assets.
III. Is Trump Exploiting His Presidential Title for Personal Gain?
Issuing Non-Fungible Tokens, hyping memes, hosting dinners, launching phones, submitting ETF applications... Trump seems unstoppable in his money-making endeavors.
Ethics oversight organizations believe Trump's actions suggest potential corruption and conflicts of interest.
Upon the announcement of the Trump Mobile, Megan Fockner, Communications Director of Citizens for Responsibility and Ethics in Washington (CREW), stated: "It's incredible how the Trump family has created yet another avenue for personal enrichment during Trump's presidency."
Ethics experts argue that Trump formulates policies that could bring economic benefits to cryptocurrencies.
In recent years, the Trump family's business has been large and continuously expanding - including long-held real estate and casino assets, and recent ventures into cryptocurrencies - which has deepened concerns about the president's disregard for ethical standards during his term. Although the White House has consistently denied this. Press Secretary Caroline Levitt previously stated that suggesting Trump acts "for his own interests" is "ridiculous", and the White House always adheres to the "highest moral standards". The White House says the president is separated from his namesake enterprises - he has transferred approximately $4 billion in Trump Media shares to a trust controlled by Donald Trump Jr.
IV. How is Trump Making Money?
Based on recently published financial documents, Trump has earned millions from his family's crypto enterprises, private golf clubs, and sales of various goods from Bibles to watches, expanding his business empire using his political status. Here are the specific details of Trump's first disclosed asset and liability situation since returning to the White House:
Cryptocurrency: One of Trump's largest disclosed income sources is selling tokens worth $57 million through WLF Holdco LLC. Trump also holds Ethereum valued between $1 million and $5 million.
Royalties: Trump has reached various licensing agreements with companies selling products using his name, image, and likeness (from sneakers to watches), bringing in millions in royalties.
Bible: Trump earned over $1.3 million from Lee Greenwood's "God Bless America" Bible. During the 2024 campaign, Trump released a video calling on supporters to buy this Bible to "Make America Pray Again".
Sneakers and Perfume: Earned $2.5 million.
Watch: Sold "Trump Watches" earning $2.8 million.
Guitar: A "45" guitar earned over $1 million.
Private Club: Primarily the flagship property Mar-a-Lago, with income slightly over $50.1 million, lower than last year's reported income of around $57 million.
First Lady: Melania Trump's speaking fee information during last year's campaign: In July, she gave a speech to the "Log Cabin Republicans" representing LGBTQ conservatives in New York, receiving $475,000 in compensation. She also earned nearly $217,000 by selling Non-Fungible Tokens.
V. Conclusion
From not supporting cryptocurrency to becoming the first "crypto president" in US history; from Non-Fungible Tokens, meme to Trump phone, ETF... Trump has always been at the forefront of chasing wealth. On one hand, supported by political halo, on the other hand, with a businessman's background, is the Trump family's current layout truly reflecting Trump's dream of manufacturing returning to the US, or merely a gimmick for making money? Can Truth Social's ETF compete with giants like BlackRock? Where will this businessman president lead the United States? These questions may still require time to evaluate.
Source: Jinse Finance, TRUMP official website, BBC, Bloomberg, CNN, CoinTelegraph, etc.
