President Donald Trump’s social media enterprise declared on Tuesday intentions to introduce a new cryptocurrency exchange-traded fund (ETF) that will monitor the values of five various cryptocurrencies.
The organization submitted documents to the US Securities and Exchange Commission (SEC) on Tuesday, seeking endorsement to unveil the “Crypto Blue Chip ETF” later this year.
Upcoming Crypto Blue Chip ETF
The suggested crypto ETF will allocate 70% of its assets to Bitcoin (BTC), the foremost cryptocurrency, with an additional 15% in Ethereum (ETH), the second-largest digital currency.
It will also incorporate 8% in Solana (SOL), maintain 5% in XRP, the digital currency created by Ripple Labs, and 2% in the digital asset founded by Crypto.com (CRO), which is designated to be the ETF’s digital custodian.
This new offering comes after Trump Media’s previous declarations about a simplified crypto ETF that solely featured Bitcoin and Ethereum. However, it is still uncertain if the organization plans to move forward with that original idea.
Crypto ETFs have gained notable traction, offering investors an efficient method to engage with the crypto market without directly acquiring the assets. The growing enthusiasm for these funds has been clear since the initial Bitcoin ETFs launched in US markets last year.
Trump’s Cryptocurrency Strategy For The US
Recent updates in regulatory direction from the SEC could further aid the introduction of such products. The agency has taken steps to create a more conducive atmosphere for crypto enterprises, including retracting or postponing several enforcement actions against crypto companies since Trump assumed office.
In recent weeks, the regulatory body, under the guidance of pro-crypto SEC Chairman Paul Atkins, has proceeded to resolve legal disagreements with key entities, such as Binance, Coinbase, and Uniswap.
Interestingly, Trump’s perspective on Bitcoin has changed dramatically as well. Once a doubter of cryptocurrencies, he has now embraced the sector, which has emerged as a source of considerable campaign donations and backing.
While the Trump administration has actively championed crypto-friendly regulations, this has raised concerns among critics. Accusations of potential impropriety have surfaced from Democrats, alongside apprehensions from some within the crypto community regarding the ramifications of Trump’s family’s expanding crypto business initiatives.
During a recent press conference, Trump addressed these apprehensions, claiming that his family’s investments were entirely suitable and underscoring his administration’s dedication to positioning the US as the global frontrunner in cryptocurrency. “If we didn’t have it, China would,” the President remarked.
At the moment of writing, the official TRUMP memecoin is valued at $8.58. This signifies a 17% decrease over the past month and an 88% decline from its highest record of $73, which was achieved 24 hours after the token’s introduction.
Image from DALL-E, chart from TradingView.com
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