Trump Media & Technology Group (TMTG) has filed with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that will invest in both Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies.
This filing, reported by Reuters, marks the second exchange-traded fund proposal from the company in less than two weeks, indicating a strong push into the digital asset market.
New Crypto ETFs From Trump Media
If approved, the proposed Truth Social Bitcoin ETF and the Truth Social Bitcoin & Ethereum ETF would enter a crowded market already dominated by established players like BlackRock, whose iShares Bitcoin ETF boasts an impressive $72.5 billion in assets.
Bryan Armour, an ETF analyst at Morningstar, emphasized the hurdles faced by new entrants in this sector. “It will be a challenge for any new entrant in this market,” he noted, adding that the primary ways to stand out will be through competitive fees or strong branding.
Currently, similar exchange-traded funds charge operation fees around 0.12%, but details on the fees for Trump Media’s new offerings for the dual Bitcoin and Ethereum funds remain undisclosed.
Balanced Exposure With Bitcoin And Ethereum Holdings
The latest filing also specifies an allocation strategy between Bitcoin and Ethereum, indicating that the fund will initially hold three Bitcoin for every Ethereum token.
This approach suggests a strategic positioning that could appeal to investors looking for a balanced exposure to both leading cryptocurrencies.
Sui Chung, CEO and chairman of CF Benchmarks, pointed out that the unique aspect of these ETFs may lie in their marketing strategy:
There is little that is different about this new venture other than the way it could be markete. Given Truth Social’s involvement, it may very well be that (these) are marketed directly to individual investors and that this ends up getting attention from those investors in the same way that people who love their iPhones buy Apple stock
At the time of writing, Bitcoin is trading at $107,715, marking a 4.1% gain on the monthly timeframe. This comes as the market’s leading cryptocurrency failed once again to gain a foothold above the key $111,000 mark, preventing it from making new all-time highs. Currently, BTC is trading 4% below its record price.
Ethereum, on the other hand, trades at approximately $2,613 per token. It has recorded gains of a little over 5% in the past thirty days and has been one of the best performers for June so far.
Nevertheless, ETH remains well below its record high, which was reached nearly four years ago. There is a 46% gap between the current price and the record high of $4,878.
Featured image from DALL-E, chart from TradingView.com
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