Companies associated with former President Donald Trump are increasingly navigating the cryptocurrency landscape. The Trump Media & Technology Group has formally advanced its engagement in digital assets, with its affiliate, Truth Social Funds, submitting a registration statement to the US Securities and Exchange Commission (SEC). This proposal aims to introduce two new cryptocurrency exchange-traded funds (ETFs).
The proposed filings detail plans for two distinct investment products: the Cronos Yield Maximizer ETF, which focuses on Crypto.com’s native token, Cronos (CRO), and an ETF tracking the performance of Bitcoin (BTC) and Ethereum (ETH). The Cronos ETF seeks to offer exposure to the pricing dynamics of CRO while also facilitating staking rewards from the asset. In contrast, the second fund aims to spotlight Bitcoin and Ethereum, the two largest cryptocurrencies, incorporating Ether staking yields as part of its investment strategy.
Under this structure, Crypto.com will play a pivotal operational role, providing essential services including custody, liquidity, and staking for the proposed funds. Yorkville America Equities has been appointed as the investment adviser for these ETFs, which will carry an annual management fee of 0.95%.
This announcement marks an extension of a broader strategic partnership initiated last year between Trump Media and Crypto.com. Under the terms of the agreement, Trump Media planned to acquire 684.4 million CRO tokens at an estimated price of $0.153 per token. This transaction was structured as a mix of 50% stock and 50% cash and included the establishment of a Trump Media Group CRO Strategy to integrate Cronos into the overarching digital asset initiatives.
The push into crypto-related investment products comes amid a challenging period for Bitcoin, which continues to encounter technical resistance. Although it recently experienced a gain of approximately 5% over 24 hours, it has struggled to break decisively above the $70,000 mark. Additionally, shares of Trump Media saw a modest uptick of around 2.5% during recent trading, reaching approximately $11.18.
This latest move by Trump Media highlights the evolving intersection of traditional business and digital finance as the cryptocurrency market remains a focal point of interest and investment despite current market volatility.
