President Donald Trump’s social media company announced on Tuesday plans to launch a new crypto exchange-traded fund (ETF) that will track the prices of five different cryptocurrencies.
The company filed paperwork with the US Securities and Exchange Commission (SEC) on Tuesday, aiming for approval to introduce the “Crypto Blue Chip ETF” later this year.
New Crypto Blue Chip ETF
The proposed crypto ETF is designed to allocate 70% of its holdings in Bitcoin (BTC), the leading cryptocurrency, with an additional 15% in Ethereum (ETH), the second-largest digital asset.
It will also include 8% in Solana (SOL), hold 5% in XRP, the cryptocurrency developed by Ripple Labs, and 2% in the digital asset created by Crypto.com (CRO), which is set to serve as the ETF’s digital custodian.
This latest offering follows Trump Media’s earlier announcements about a simpler crypto ETF that only included Bitcoin and Ethereum. However, it remains unclear whether the company intends to proceed with that initial concept.
Crypto ETFs have surged in popularity, providing investors a streamlined way to gain exposure to the crypto market without the need to purchase the assets directly. The increasing interest in these funds has been evident since the first Bitcoin ETFs began trading in US markets last year.
Trump’s Crypto Strategy For The US
Recent developments in regulatory guidance from the SEC could further facilitate the launch of such products. The agency has made moves towards creating a more favorable environment for crypto businesses, including dropping or pausing several enforcement actions against crypto companies since Trump took office.
Over the past month, the regulatory agency, under the leadership of pro-crypto SEC Chairman Paul Atkins, has moved forward to end legal disputes with key players, such as Binance, Coinbase, and Uniswap.
Interestingly, Trump’s stance on Bitcoin has evolved significantly as well. Once a skeptic of cryptocurrencies, he has since embraced the industry, which has become a source of substantial campaign contributions and support.
While the Trump administration has actively supported crypto-friendly regulations, this has raised eyebrows among critics. Allegations of potential corruption have emerged from Democrats, alongside concerns from some within the crypto community about the implications of Trump’s family’s expanding crypto business ventures.
At a recent news conference, Trump addressed these concerns, asserting that his family’s investments were entirely appropriate and highlighting his administration’s commitment to making the US the global leader in cryptocurrency. “If we didn’t have it, China would,” the President said.
At the time of writing, the official TRUMP memecoin is trading at $8.58. This represents a 17% drop over the past month and an 88% drop from its record high of $73, which was reached 24 hours after the token’s launch.
Featured image from DALL-E, chart from TradingView.com
