Trump Media and Technology Group has filed with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that will invest in Bitcoin and Ethereum, the two largest cryptocurrencies. This is the company’s second cryptocurrency ETF filing in less than two weeks.
The proposed Truth Social Bitcoin and Ethereum ETF plans to allocate 75% of its assets to Bitcoin and 25% to Ethereum. Crypto.com will serve as the custodian and execution agent for the ETF, which aims to track the price performance of these cryptocurrencies. The ETF shares are expected to be listed on the NYSE Arca once approved.
This new ETF will enter a highly competitive market currently dominated by major players like BlackRock, whose iShares Bitcoin ETF manages $72.5 billion in assets. Bryan Armour, an ETF analyst at Morningstar, said it will be difficult for new entrants to stand out unless they offer lower fees or strong branding.
Trump Media has not yet disclosed the fees for this ETF or its previously filed Bitcoin-only ETF. Comparable crypto ETFs typically charge around 0.12% in fees.
The filing details a specific ratio for the ETF’s holdings: three Bitcoins for every one Ethereum token. Yorkville America Digital is the sponsor of the ETF.
Sui Chung, CEO of CF Benchmarks, noted that the main difference with this ETF may be its marketing approach. Given its connection to Truth Social, the fund might be promoted directly to individual investors, potentially attracting attention similar to how loyal Apple users invest in Apple stock.
Trump Media positions itself as a defender of free speech against Big Tech censorship through platforms like Truth Social and Truth+. The company’s move into crypto ETFs aligns with this broader strategy.
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