TMTG, the operator of the Truth social network, announced today that it has submitted documentation seeking approval for the launch of the “Crypto Blue Chip ETF” with the Securities and Exchange Commission (SEC).
The proposed ETF is expected to be operational this year, with 70% of its holdings in bitcoin, the world’s most popular cryptocurrency; 15% in ethereum, the second most popular; and 8% in solana, a cryptocurrency heavily used in the community of ‘meme’ coins.
The fund will also hold 5% in the cryptocurrency developed by Ripple and 2% in the cryptocurrency created by the exchange Crypto.com.
Cryptocurrency-based ETFs facilitate investor exposure to cryptocurrencies without the need to purchase them directly.
The popularity of these funds has increased since bitcoin ETFs began trading in U.S. markets last year.
The SEC released new guidelines last week for cryptocurrency ETF issuers, part of the Trump administration’s effort to create a more favorable regulatory environment for the activity.
Since Trump took office, the agency has also withdrawn or suspended several enforcement actions against cryptocurrency companies.
Trump, once a skeptic of cryptocurrencies, has largely embraced the industry, which reacted negatively to regulatory attempts by former President Joe Biden’s administration.
During his campaign, Trump promised to make the United States the “crypto capital of the planet,” and the sector responded by contributing over 100 million dollars (88 million euros) for his re-election and for lawmakers supportive of the industry.
Ripple was one of the largest donors to Trump’s inauguration committee.
In addition to publicly defending the sector, the Trump family has engaged in highly lucrative cryptocurrency deals.
In late May, TMTG announced plans to raise 2.5 billion dollars (2.2 billion euros) to create a cryptocurrency reserve.
In a statement, TMTG said it is in negotiations with about 50 investors to issue shares worth approximately 1.5 billion dollars and bonds worth 1 billion dollars, with the amount earmarked for cryptocurrency purchases.
The cryptocurrencies will be incorporated into the group’s balance sheet, which will thus rise from 759 million dollars (670 million euros) to over 3.2 billion dollars (2.8 billion euros).
“We view bitcoin as the ultimate instrument of financial freedom, and Trump Media will now maintain cryptocurrencies as a core part of its assets,” said Devin Nunes, former Republican congressman who leads the group.
At the same time, the President of the United States hosted a closed-door dinner for the 220 largest holders of his cryptocurrency, launched just hours before taking office at the end of January.
The President’s ‘meme’ cryptocurrency ($TRUMP), which unlike traditional payment methods does not have fiduciary backing from a financial entity, has been traded online since the beginning of this year, and blockchain analysis company Chainalysis estimates it has generated over 320 million dollars in fees for its promoters since then.
An ethical agreement prohibits Trump from making “day-to-day” decisions at the Trump Organization while President and limits financial information that can be shared with him.
Critics of Trump’s venture into ‘meme’ coins, including the Democratic opposition, say the pseudonymous nature of the cryptocurrency provides an opportunity for undue influence on the President through the purchase of his digital assets.
U.S. law does not require disclosure from buyers of ‘meme’ currencies.
A startup launched in September with Trump’s family support created its own type of ‘stablecoin’, USD1, at the end of March, already utilized by the MGX fund from the UAE to acquire a 2 billion dollar (1.76 billion euro) stake in the crypto exchange Binance.
Bitcoin, the most traded cryptocurrency in the market, has reached all-time highs amid a weakening U.S. dollar and concerns about the U.S. budget deficit.
Last month, at a press conference, Trump dismissed any notion that his family’s investments were improper and praised his administration’s efforts to make the United States the world capital of cryptocurrencies.
