Truth Social from the Trump Media has applied for the creation of ETF, concentrated on bitcoin and other assets, such as SOLANA and CRONOS.
ETF on the basket of altcoin is still in a legal vacuum. The Grayscale Application received the approval of the SEC, but then suspended. The Truth Social path to adjustable exchanges remains unclear.
New Altcoin -etf Trump
Truth Social is an important part of the crypto -imperia of President Trump. For several months she has been planning the launch of ETF. In early June, Nyse Arca filed a 19B-4 form to launch Bitcoin-ETF under the brand of the company. Today’s application implies a wider approach, including several famous altcoins along with bitcoin (BTC):
According to the application in the SEC, the new Truth Social product will be primarily bitcoin-ETF. 70% of the assets will be directed to bitcoin, 15% by ETH, 8% on SOL, 5% on Cronos (CRO) and 2% on XRP. The company recently tried to create a joint BTC/ETH ETF. Now diversification of altcoins is gradually increasing.
At first glance, it may seem strange that Cronos occupies such a significant position in the ETF, more than twice the fraction of the XRP. Ripple is closely connected with the president. So, the company donated $ 5 million in XRP for Trump’s inauguration. In addition, XRP is much better known than Cro. However, the fact that Truth Social has concluded a special agreement with Crypto.com to promote altcoin -etf, make the inclusion of Cronos more understandable. The price of Cro increased by more than 15% after this news.
Truth Social may have difficulties
Nevertheless, Truth Social may face difficulties when adding another ETF to Trump cryptoimperia. Last week, the SEC approved the converting of the Grayscale multi -icing cryptonfield in ETF, but immediately suspended the actual trade. This product is now in an suspended state without the established deadlines. Truth Social may encounter similar problems.
The planned ETF will be designed as a business traffic in Nevada, which is often used for investment funds. This simplifies ETF management and can help reduce legal and tax difficulties compared to other forms of business.
At the moment, this application reflects Trump’s interest in further expansion of ETF. While this trend continues, the final approval seems likely. SEC announced the readiness to cooperate with new products, proposing a simplified process of approval of ETF applications for altcoins.
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Source: Cryptocurrency
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