Trump Media & Technology Group, which owns Truth Social, has filed documents with the U.S. Securities and Exchange Commission to start a new exchange-traded fund (ETF) based on Bitcoin and Ethereum. The fund would be called the Truth Social Bitcoin and Ether ETF.
The company also filed to launch another crypto ETF linked to Cronos (CRO). The filings were made through Truth Social’s ETF arm, known as Truth Social Funds. These new products would expand the company’s growing list of investment offerings built around its “America First” strategy.
In both filings, Truth Social Funds discloses plans to launch two crypto ETFs. One is the Truth Social Bitcoin & Ether ETF. That fund tracks the growth of two of the world’s largest cryptocurrencies by market capitalization: Bitcoin and Ethereum. According to the fund’s proposal, it would allocate roughly 60% of its assets to Bitcoin and 40% to Ethereum, according to the filing.
Its second fund is the Truth Social Cronos Yield Maximizer ETF. This product would center on Cronos (CRO), the token linked to the Cronos blockchain, which is associated with Crypto.com. Both ETFs are in development in cooperation with Crypto.com.
The crypto exchange would act as the digital asset custodian, holding the cryptocurrencies on behalf of the funds and providing staking services, through which cryptocurrency holders may earn rewards by backing certain blockchain networks.
In a public statement, Crypto.com co-founder and CEO Kris Marszalek said the company is pleased to provide custody, liquidity, and staking services for the new Truth Social Funds ETFs.
Truth Social structures new Bitcoin and Ethereum ETFs
The Truth Social Bitcoin and Ether ETF is a joint crypto fund. It holds the two most substantial crypto assets, Bitcoin and Ethereum, in a single product, allowing investors to own both in a single asset.
In addition to price tracking, the ETF will generate staking rewards from its Ethereum holdings. Ethereum offers staking, and holders can earn more than they would otherwise. The company has indicated that the rewards from staking would then be passed on to ETF investors.
The Cronos Yield Maximizer ETF, however, is designed to track CRO’s performance. This would also give you access to both native staking and liquid staking of the token. Native staking locks tokens directly on the blockchain to earn rewards; liquid staking allows investors to receive a tokenized version of their staked assets that can still be traded.
These filings are not the company’s first foray into crypto investment products. In June, Trump Media registered a separate Bitcoin ETF. It also applied in June for a “crypto blue chip” fund of assets that would include Bitcoin, Ethereum, and other major tokens like Solana, XRP, and CRO.
Those already-filed crypto ETFs might start trading in the next few months, depending on regulatory oversight, said Eric Balchunas, ETF analyst at Bloomberg.
Trump Media expands its “America First” investment strategy
The new crypto ETFs are part of a larger investment push by Trump Media. The company advertises the funds as “America First” products. Its existing ETF holdings comprise a red-state-focused real estate fund, an American security and defense fund, and an “American Icons” ETF.
The American Icons ETF invests in popular U.S. companies, including Walmart, McDonald’s, and Home Depot. Both the newly registered crypto funds will be advised by Yorkville America Equities, which specializes in America-first investment themes.
Shares of the Trump Media & Technology Group, which is trading under the ticker DJT, finished up roughly 0.9% at $10.98 on Friday. Still, the stock has fallen nearly 39% over the past six months.
The new Bitcoin and Ethereum ETF would join the ranks of crypto-related funds looking to lure mainstream investors, provided that it is approved by the SEC. Trump Media is also working to link its political branding to financial products tied to digital assets.
Source: https://www.cryptopolitan.com/trumps-truth-social-files-bitcoin-etf/
