Continuing his foray into the digital asset space, Donald Trump is planning a new exchange-traded fund (ETF). This ETF will be linked to the fluctuating values of five leading cryptocurrencies.
Trump Media & Technology Group (TMTG), the company behind the Truth Social platform located in Florida, revealed on Tuesday that it has submitted documentation to the Securities and Exchange Commission (SEC) for approval to launch the “Crypto Blue Chip ETF” later this year.
The proposed ETF is structured to allocate 70% of its assets to Bitcoin, the most well-known cryptocurrency. Ethereum, the second most popular, would receive 15%, and Solana, a favorite within the meme coin community, would get 8%. Ripple’s cryptocurrency would comprise 5% of the fund, while Crypto.com’s crypto, acting as the ETF’s digital custodian, would account for 2%.
Previously, Trump Media had outlined plans for a crypto ETF focused solely on Bitcoin and Ethereum. It remains uncertain whether the company intends to pursue this original ETF offering. Requests for comments from Trump Media have not yet received a response.
ETFs centered around cryptocurrencies provide investors with a simplified route to gain exposure to the crypto market, eliminating the need to directly purchase digital currencies. The popularity of these funds has surged since Bitcoin ETFs began trading on U.S. exchanges in the preceding year.
The SEC issued updated guidelines last week for entities issuing crypto ETFs, reflecting the administration’s goal of fostering a more supportive regulatory landscape for companies involved in cryptocurrencies. Since the current term began, the agency has also either dropped or put on hold several enforcement actions previously taken against cryptocurrency firms.
Once a vocal critic of Bitcoin, the former President has now openly embraced the cryptocurrency industry, which, in turn, has contributed to his campaigns and other ventures. Ripple, for instance, was among the top contributors to the Presidential inaugural committee.
Concurrently with the current adminstration’s advocacy for accommodating crypto regulations, the former President’s family has aggressively expanded its crypto-related business interests. This situation has raised corruption allegations from political opponents. Furthermore, concerns have been voiced among crypto advocates, who worry that the President’s actions might be damaging their efforts to build trust and stability within the cryptocurrency sector.
At a press conference last month, the former President refuted any implications that his family’s investments were inappropriate, while also highlighting his administration’s work to position the U.S. as the global leader in the crypto space.
“If we didn’t have it, China would,” the former President stated.