Trump-affiliated organization submits proposal for Exchange-Traded Fund (ETF) based on Bitcoin
The Trump Media & Technology Group (TMTG) is set to make a significant move in the cryptocurrency market with the impending launch of their Bitcoin spot ETF. The New York Stock Exchange (NYSE) has filed an application for the "Truth Social Bitcoin ETF" with the U.S. Securities and Exchange Commission (SEC).
Crypto.com will provide the backend technology, manage the custody, and supply the cryptocurrencies for the ETF. Foris DAX Trust Company, a subsidiary of Crypto.com, will be responsible for managing the Bitcoin custody for the proposed ETF.
TMTG's focus on Bitcoin, as shown by the planned launch of the Bitcoin spot ETF, suggests that the company could have significant holdings in the digital asset. However, the details about the fees and the ticker for the ETF are yet to be disclosed.
Last week, TMTG raised nearly $2.5 billion through capital markets to build a Bitcoin reserve. The company's increasing push into the crypto market indicates a strong belief in the potential of Bitcoin as an asset class.
The proposed ETF will be a pure Bitcoin ETF, but initial plans included a crypto ETF that would contain a basket of cryptocurrencies, including Bitcoin and Cronos, the centralized coin of Crypto.com.
The challenge for TMTG's Bitcoin ETF will be to gain market share, especially considering the size and liquidity of larger Bitcoin ETFs like BlackRock's (IBIT). Whether the Truth Social Bitcoin ETF will see relevant inflows remains to be seen.
Tristan, the Editor-in-Chief at Blocktrainer.de with a degree in economics and journalistic experience outside of the Bitcoin sphere, has been actively involved with Bitcoin since 2020, having previously explored libertarian economic theory. Despite extensive search results, the name of any trust fund managing the stocks of former U.S. President Trump could not be found.
U.S. President Trump is likely to have a lot at stake in the success of the Bitcoin asset class, as he owns the majority of the company's shares. The Bitcoin engagement of TMTG may hint at Trump's significant holdings in Bitcoin, although this remains speculation.
As the launch of the Truth Social Bitcoin ETF approaches, the cryptocurrency market eagerly awaits to see how TMTG's entry will impact the Bitcoin ETF landscape.
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