The parent company of the social platform Truth Social, controlled by the Trump family—Trump Media—recently applied to the U.S. Securities and Exchange Commission (SEC) to launch a cryptocurrency exchange-traded fund (ETF) named "Truth Social Crypto Blue Chip ETF," aiming to further expand its layout in the digital asset field.
This news comes just one day after Trump Media's application for a Bitcoin and Ethereum dual-coin ETF was approved by the SEC. Unlike the previous fund focused on Bitcoin and Ethereum, the newly applied "Blue Chip Crypto ETF" introduces more crypto assets, including Solana (SOL), XRP, and Cronos (CRO), with allocation ratios of 8%, 2%, and 5% respectively, while Bitcoin and Ethereum still dominate at 70% and 15% respectively.
According to CoinMarketCap data, XRP is currently the third largest cryptocurrency globally, SOL is sixth, and CRO is ranked 34th. Although not highly valued, the inclusion of CRO is considered likely related to the collaboration between Crypto.com and Trump Media, who previously launched an "American Made" themed ETF.
Following the announcement, SOL, XRP, and CRO all experienced varying degrees of increase, with CRO having the largest rise of 14%. According to the document, if approved, the ETF will be listed on the New York Stock Exchange Arca and will operate through a subscription and redemption mechanism of 10,000 shares to keep the fund price close to its net asset value.
It is noteworthy that this ETF will not be considered a registered investment company and will not be subject to the Commodity Futures Trading Commission (CFTC) commodity pool regulations. Trump Media's move indicates its ongoing emphasis on the digital asset market, leveraging political influence and market trends to attract investor attention.
