President Donald Trump’s media company is looking to enter the ETF space in the coming months. Last week, Trump Media submitted a filing with the SEC outlining its plans with these proposed exchange traded funds (ETFs).
As per the filing, Trump Media is looking to launch two ETFs — the Truth Social Bitcoin and Ether ETF and the Truth Social Cronos Yield Maximizer ETF.
The BTC and ETH ETF product is designed to trail the price movements of the two largest crypto assets. Whereas the Cronos-focussed fund will track the CRO token and allow investors generate rewards on staking — providing yield.
Trump Media has teamed up with Crypto.com to facilitate these ETFs if the SEC approves the application.
The alliance between Trump Media and Crypto.com has started to take shape last year — intended to assist each other in the debuts of the planned ETFs. The Truth Social BTC ETF has also been in works since August last year.
Now that these ETFs have been filed, the SEC will conduct a review.
BlackRock, Fidelity, iShares, and Grayscale are among other corporate and fintech giants that offer crypto ETFs.
ETFs essentially allow traders to invest and experiment with assets without having to actually purchase and hold them. When one purchases an ETF, they own shares of a fund that owns the asset. The drawback of investing in an ETF is that investors will have to rely on the ETF manager in terms of financial trust.