Trump Media Files for Bitcoin and Ether ETFs with Staking Rewards Focus

TLDR

• Trump Media filed a registration statement with the SEC to launch Cronos, Bitcoin, and Ethereum ETFs.
• The Cronos-focused ETF will provide exposure to the native token and staking rewards.
• Crypto.com will handle custody, liquidity, and staking services for the proposed ETFs.
• Trump Media’s partnership with Crypto.com includes acquiring 684.4 million CRO tokens.
• The Bitcoin and Ethereum ETF will track performance and incorporate Ether staking yields.

Trump Media & Technology Group has taken another step into the digital asset space. The company, through its affiliate Truth Social Funds, submitted a registration statement to the U.S. Securities and Exchange Commission (SEC). This filing aims to launch two cryptocurrency exchange-traded funds (ETFs) linked to the Cronos (CRO), Bitcoin (BTC), and Ethereum (ETH) markets.

Cronos-Focused ETF Aims for Exposure and Staking Rewards

The first ETF proposed by Truth Social Funds focuses on Cronos (CRO), the native token of Crypto.com’s Cronos blockchain. The fund intends to give investors exposure to CRO while also generating staking rewards for those holding the asset. The filing states that Crypto.com will play an essential role in providing custody, liquidity, and staking services for the ETF. This initiative comes as part of Trump Media’s broader crypto strategy, which aims to integrate digital assets into its growing portfolio.

Crypto.com’s collaboration with Trump Media involves acquiring large amounts of Cronos tokens, which were included in last year’s strategic partnership deal. Trump Media agreed to buy approximately 684.4 million CRO tokens at a price of $0.153 per token. The deal was structured as a 50% stock and 50% cash exchange, marking the beginning of a broader effort to link the Trump Media Group to the growing cryptocurrency market.

Bitcoin and Ethereum ETFs to Include Ether Staking Yields

The second proposed ETF will track Bitcoin and Ethereum, two of the largest cryptocurrencies by market capitalization. The fund would not only track the price movements of these digital assets but would also incorporate Ether staking yields into its strategy. This approach aims to offer exposure to these popular cryptocurrencies while also generating additional returns for investors through staking rewards.

Crypto.com will again be involved in operational aspects, including providing services related to custody, liquidity, and staking. The proposed Bitcoin-Ethereum ETF is expected to serve as a key part of Trump Media’s plan to capitalize on the growing demand for crypto-related financial products. This move aligns with their previous investments in digital assets, demonstrating Trump Media’s commitment to the sector.

Shares of Trump Media (DJT) saw a modest increase, rising about 2.5% to $11.18. This uptick occurred during Friday’s trading session, reflecting growing investor interest in the company’s crypto-focused initiatives.

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