Trump-affiliated company submits Bitcoin Exchange-Traded Fund proposal
Tristan, Editor-in-Chief at Blocktrainer.de, has taken on a new challenge as the Trump Media & Technology Group (TMTG) prepares to launch a Bitcoin Exchange-Traded Fund (ETF) on the New York Stock Exchange (NYSE). Tristan brings journalistic experience from beyond the Bitcoin sphere to this venture.
TMTG announced a partnership with Crypto.com in March, which will see Foris DAX Trust Company, a subsidiary of Crypto.com, responsible for the custody of the Bitcoin in the ETF. This partnership was facilitated to help TMTG raise approximately $2.5 billion through capital markets to build a Bitcoin reserve.
The ETF, which is expected to be a pure Bitcoin ETF, is planned to be listed on the NYSE Arca exchange. Yorkville America Digital, LLC will handle the administration and trading of the ETF. Donald Trump, the former U.S. president, is reported to own 'a lot' of Bitcoin, but it's unclear whether this association will be a decisive factor for investors choosing the Bitcoin ETF from Truth Social over other established ETFs.
Initially, it was mentioned that crypto ETFs would be launched, which would include a basket of cryptocurrencies. However, the focus has now shifted to a simple Bitcoin spot ETF. With competition from larger and more liquid ETFs like the $70 billion ETF from BlackRock (IBIT), it will be a significant challenge to gain market share.
Trump Inc. has also expressed plans to purchase Bitcoin for $2.5 billion. It remains unclear whether the product portfolio will be expanded to include other crypto ETFs or if TMTG will stick to its plan of replicating 'Made in America' securities that cover various sectors via ETFs.
Donald Trump Jr. manages the irrevocable trust fund that holds the majority of Trump's shares in TMTG. The details such as fees and the ticker symbol for the ETF have not yet been disclosed. Crypto.com will support the backend technology, provide custody, and supply the cryptocurrencies for the ETF.
As TMTG moves forward with its plans to launch the Bitcoin ETF, investors and cryptocurrency enthusiasts alike will be watching closely to see how this new product performs in the competitive ETF market.
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