Trump Media and Technology Group is intensifying its foray into the realm of digital assets by announcing the filing of applications for two new cryptocurrency exchange-traded funds (ETFs) centered around Bitcoin, Ethereum, and the Cronos ecosystem. This move signals a deeper integration of U.S. politics with the burgeoning cryptocurrency investment landscape.
The newly proposed ETFs include the “Truth Social Bitcoin and Ether ETF” and the “Truth Social Cronos Yield Maximizer ETF.” The Bitcoin and Ether fund aims to track the performance of the two leading cryptocurrencies, with a weighted emphasis on Bitcoin. In contrast, the Cronos ETF is designed to give investors exposure to CRO, the native token of the Crypto.com-associated Cronos blockchain, while also incorporating staking rewards for participants.
In collaboration with Trump Media, Crypto.com is set to provide essential custody and liquidity services for these funds. CEO Kris Marszalek confirmed the company”s commitment to supporting these initiatives and enabling trading access once the funds launch.
This latest filing adds to the previous attempts by Trump Media to establish a foothold in the digital finance space, which includes applications for a standalone Bitcoin ETF and a multi-asset crypto fund that encompasses several significant tokens.
The ETF market is becoming increasingly competitive, with major asset managers such as BlackRock, Fidelity, and Grayscale already offering widely traded Bitcoin investment products. These vehicles provide investors with indirect exposure to cryptocurrency without the need to hold the tokens directly.
In addition to its ETF initiatives, Trump Media has expressed interest in leveraging blockchain technology beyond these funds. Recently, the company announced plans to distribute a new digital token to shareholders on the Cronos network and made known intentions for a corporate crypto treasury involving CRO.
However, this expansion has not gone unnoticed, as it has attracted political scrutiny. Critics have raised concerns about potential conflicts of interest arising from the former president”s business endeavors, especially as regulatory decisions regarding digital assets are being deliberated in Washington.
Moreover, data indicates that Bitcoin has experienced a decline in millionaire addresses since Trump took office, with roughly 25,000 such wallets disappearing in the past year. This decline occurred despite a shift towards a more favorable regulatory environment for cryptocurrencies in the U.S. Blockchain analytics reveal that the number of addresses holding at least $1 million in Bitcoin has fallen approximately 16% year over year, suggesting that optimism surrounding regulatory changes has not yet fostered sustained growth in on-chain wealth.
In conclusion, Trump Media”s filings for new cryptocurrency ETFs mark a significant development in the intersection of politics and the digital asset sector, further pushing the envelope on how traditional investment vehicles can adapt to the evolving cryptocurrency landscape.
