The Trump Media & Technology Group (TMTG) has recently made headlines with its bold move to enter the world of digital finance by filing to launch a new exchange-traded fund (ETF) that will track Bitcoin and Ethereum. This filing, submitted to the US Securities and Exchange Commission (SEC) on June 16, marks a significant shift for the company behind the Truth Social platform.
The proposed ETF, as outlined in the filing, will be a passive investment vehicle that aims to track the prices of Bitcoin and Ethereum. The fund will allocate 75% of its portfolio to Bitcoin and 25% to Ethereum, with the potential for rewards earned from staked ether. TMTG has partnered with Crypto.com to handle custody, trading execution, staking, and liquidity support for the ETF.
Yorkville America Digital is expected to sponsor the ETF, and if approved by the SEC, the fund will be listed on NYSE Arca. Despite this announcement, TMTG shares have shown little movement, with the stock price down about 2% to under $20, its lowest price since April.
This strategic shift towards crypto represents a significant move for TMTG as it transitions from a social media-centric platform to a broader fintech player. By partnering with key industry players like Crypto.com and Yorkville America, the company is looking to develop a lineup of TMTG-branded ETFs that blend digital and traditional assets.
One of the flagship offerings will be the Truth Social Bitcoin and Ethereum ETF, building on an earlier filing by NYSE Arca for the Truth Social Bitcoin ETF. In addition to its ETF ambitions, TMTG has also recently secured regulatory clearance for a $2.3 billion Bitcoin Treasury deal, signaling its plans to increase its crypto reserves.
These developments highlight TMTG’s growing commitment to digital assets and its efforts to capitalize on the rising adoption of cryptocurrencies. By entering the ETF market and partnering with industry leaders, TMTG aims to offer regulated exposure to major digital assets while expanding its presence in the digital finance space.
Overall, TMTG’s foray into the world of crypto and ETFs marks an exciting new chapter for the company as it continues to evolve and adapt to the changing landscape of digital finance.