Trump Media, backed by the family of the US president, has applied to create an ETF investing in Bitcoin and Ethereum. The application is currently under review by the Securities and Exchange Commission (SEC).
ETF Application Details
The proposed ETF outlines a distribution of 75% of its assets to Bitcoin and 25% to Ethereum. Shares of the fund will trade on NYSE Arca, providing investors with exposure to the two largest cryptocurrencies without direct ownership. The filing emphasizes that the fund's shares are not exact equivalents of BTC and ETH, but instead offer a 'more familiar' route for investors seeking regulated crypto exposure.
Potential Earnings from Ethereum
Trump Media also stated it may stake the ETF's Ethereum holdings to generate additional income, pending compliance and internal risk evaluations.
Requirements for ETF Participants
Shares for the proposed fund will be issued in 'baskets' of 10,000, or integral multiples thereof. Only 'Authorized Participants' can initiate the creation or redemption of these baskets. 'Each Authorized Participant must be a registered broker-dealer, a participant in Depository Trust Company (DTC), have entered into an agreement with the Sponsor and be in a position to transfer cash to, and take delivery of cash from, the Cash Custodian through one or more accounts,' the filing stated.
Trump Media's application for a Bitcoin and Ethereum ETF may significantly impact the cryptocurrency market, providing new opportunities for investors in this rapidly evolving sector.
