Crypto Market Evolution: Trump-Linked Entity Launches Three New ETF Products
Following previous regulatory hurdles, Trump Media & Technology Group (DJT) has once again filed applications with the U.S. Securities and Exchange Commission (SEC) for Bitcoin and Ethereum Exchange-Traded Funds (ETFs), according to new disclosures made public this Friday.
The group also revealed plans for an innovative product - a "Truth Social Cronos Yield-Enhanced ETF" that will track Crypto.com's native CRO token. This groundbreaking approach will incorporate staking rewards, representing a significant convergence between traditional finance and decentralized finance (DeFi) mechanisms.
- Yorkville Advisors serves as asset management consultant
- Crypto.com provides digital asset custody and liquidity support
- Trading execution through Foris Capital platform
Product Features and Market Impact
If approved, these ETFs will operate with a 0.95% management fee structure. Unlike traditional ETFs, these products will directly participate in blockchain network staking, validating transactions and maintaining network security to earn block rewards.
This innovative model has drawn regulatory attention. While the SEC has accelerated approvals for mainstream crypto ETFs recently, it maintains caution regarding products involving staking rewards and smaller market cap tokens.
Strategic Partnership Deepens
The collaboration between DJT and Crypto.com extends beyond ETFs, with the recent launch of a prediction market platform and plans to distribute Cronos-chain-based reward tokens to shareholders, marking a significant transformation of traditional media groups toward Web3.0 ecosystems.