Trump Media files two new crypto ETFs linked to Bitcoin Ether and Cronos

Donald Trump’s empire continues to expand its footprint in the crypto universe. Trump Media has just filed two new exchange-traded funds focused on major cryptocurrencies with the SEC: a Bitcoin-Ether ETF and a Cronos ETF. This offensive comes as the market goes through a period of marked turbulence.

A double offensive on the regulated crypto market

Trump Media & Technology Group officially filed on Friday two exchange-traded funds with the U.S. Securities and Exchange Commission. 

The subsidiary Truth Social Funds is leading this initiative which aims to offer the “Truth Social Bitcoin and Ether ETF” as well as the “Truth Social Cronos Yield Maximizer ETF.” Applications remain under review by regulators before any market launch.

The first product will replicate the combined performance of Bitcoin and Ether, the two giants of the crypto market by market capitalization. The uniqueness lies in the integration of staking rewards generated by Ethereum, providing passive income to investors. 

The second fund focuses exclusively on CRO, the native token of the Cronos blockchain developed by Crypto.com.

“We plan to provide an investment platform covering multiple aspects of digital and crypto investment,” said Steve Neamtz, president of Yorkville America Equities. 

The New York firm will act as investment advisor for these two funds. Each product would have management fees of 0.95%, a standard rate for such instruments.

Crypto.com will play a central role in the architecture of these ETFs. The platform will provide asset custody services, liquidity and staking operations if authorities give the green light. Investors will access the products via Foris Capital US LLC, the broker affiliated with the exchange.

A bold bet in a pressured market

This crypto offensive is part of a larger Trump Media strategy to invest in the blockchain ecosystem.

Last September, the company had already entered into an agreement with Crypto.com to create a joint treasury entity. The operation included an initial purchase of 684.4 million CRO tokens for about $105 million. The conglomerate also announced in January a crypto airdrop for its shareholders, thus strengthening its anchoring in Web3.

The timing of these filings is however questionable. Spot Bitcoin ETFs are experiencing turbulence with four consecutive weeks of net outflows. The last week saw $360 million exit these products, according to SoSoValue data. The largest withdrawals reached $817.87 million on January 29 and $544.94 million on February 4.

Despite this difficult context, some positive signals are emerging. Recent flows show $167 million in inflows over three days in early February, almost erasing the previous week’s outflows. This flow volatility reflects institutional investors’ hesitation amid macroeconomic uncertainties.

Trump Media is methodically building its blockchain empire. The ETFs add to Truth Social, the community airdrop and the massive investments in CRO. This multi-faceted strategy could create a closed ecosystem where each initiative reinforces the others. It remains to be seen whether the SEC will approve these products and whether investors will embrace them in a still fragile crypto market.