Trump Media submits groundbreaking crypto ETF application combining 75% Bitcoin and 25% Ethereum with unique staking rewards distribution mechanism.
Political figure’s crypto fund creates market surge, boosting related tokens 47% while challenging SEC’s regulatory neutrality standards.
Strategic election-year move targets crypto voters in swing states, potentially reshaping industry partnerships and accelerating regulatory policy changes.
Trump Media files for first-ever crypto ETF mixing Bitcoin and ETH, marking unprecedented political entry into digital assets ahead of 2024 election with Truth Social branding integration.
WHITE HOUSE POWER OFFICIALLY ENTERS THE GAME
On July 2nd, Trump Media & Technology Group (NASDAQ: DJT) submitted an S-1 registration statement to the Securities and Exchange Commission (SEC). The filing seeks approval for the “Truth Social Bitcoin and Ethereum Spot ETF.” This product will become the first cryptocurrency fund launched by a former U.S. President’s affiliated company. Moreover, it directly ties to Trump’s self-built social platform brand.
According to core information disclosed in public documents:
Asset allocation ratio locks at 75% Bitcoin plus 25% Ethereum
Crypto.com serves as exclusive custodian and staking service provider
NYSE Arca confirms as the listing venue
Yorkville America Digital acts as the underwriting institution
BREAKTHROUGH SIGNIFICANCE OF PRODUCT DESIGN
Compared to traditional institutional Bitcoin ETFs, this fund presents three major innovations:
Revenue Distribution Mechanism Revolution
The fund clearly states it will return ETH staking-generated income to investors. Previously, spot ETFs issued by BlackRock, Fidelity, and other institutions failed to implement revenue sharing. Consequently, this move may force industry-wide reforms in dividend models.
Dual Liquidity Protection
Crypto.com handles asset custody while simultaneously serving as a liquidity provider. Combined with underwriter Yorkville’s market-making support, this creates a unique dual-track liquidity mechanism.
Deep Brand Ecosystem Integration
The fund name mandatorily links to the Truth Social platform. Market speculation suggests future development of exclusive holder benefits, such as premium platform feature access. This approach creates a precedent for “financial product plus social ecosystem” integration.
REGULATORY BATTLES AND MARKET TURBULENCE
This application faces dual approval hurdles:
The S-1 registration statement requires SEC approval to become effective. Additionally, it needs simultaneous approval through the 19b-4 form for market rule changes.
Chain reactions occurred within one hour of the announcement:
Trump-concept token TRUMP (MAGAPEPE) prices soared 47% (CoinGecko data)
Crypto.com platform token CRO rose 15% in a single day
NYSE parent company Intercontinental Exchange (ICE) stock gained 3.2%
Bloomberg ETF analyst James Seyffart notes: “If approved, this product will become a key test of SEC political neutrality. The Biden administration has already rejected dozens of crypto ETF applications.”
STRATEGIC IMPLICATIONS FOR ELECTION SEASON
During the countdown to November’s U.S. election, this move contains three political calculations:
Competing for Key Voter Groups
Coinbase’s 2024 research shows crypto holders represent over 20% of swing state voters. Furthermore, this group displays clear bipartisan characteristics. Trump’s team announced Bitcoin donation acceptance in May. Subsequently, this ETF strategy further strengthens crypto voter appeal.
Reshaping Industry Partnership Landscape
Choosing Crypto.com over Coinbase as a partner carries deep significance. The latter donated to Biden’s campaign team, while Crypto.com focuses mainly on Asian markets. Therefore, this choice signals subtle geopolitical positioning.
Forcing Regulatory Policy Shifts
Former SEC advisor Michael Selig analyzes: “If Trump wins, this ETF could become a testing ground for new government crypto policy. It might even accelerate approval of other mixed ETFs.”
KEY UPCOMING PROCESS MILESTONES
Based on SEC approval practices and historical data:
Average review cycle spans 5-8 months (latest by March 2025)
Trump Media (DJT) stock after-hours volatility exceeded 180%
Existing ETF issuers like Grayscale may adjust product strategies to meet competition
This comprehensive analysis draws from Trump Media’s official statements and SEC public documents. Market data sources include CoinGecko and Yahoo Finance. The filing represents a watershed moment where political influence directly intersects with cryptocurrency markets.
The Truth Social ETF proposal challenges traditional boundaries between politics and finance. If approved, it could establish new precedents for political figure involvement in crypto markets. Additionally, the timing coincides perfectly with election season dynamics.
The unique 75-25 Bitcoin-Ethereum split differentiates this fund from single-asset ETFs. The staking reward distribution feature particularly stands out as an innovation. Traditional ETF providers typically retain staking rewards rather than passing them to investors.
Crypto.com’s selection as custodian also signals strategic positioning. The platform’s strong presence in Asia contrasts with Coinbase’s U.S. focus. This geographic diversification may appeal to international investors while avoiding domestic political complications.
Market reactions demonstrate investor enthusiasm for political crypto endorsement. However, regulatory approval remains uncertain given current SEC positions. The Biden administration’s crypto skepticism contrasts sharply with Trump’s recent pro-crypto statements.
This development ultimately represents political crypto adoption reaching new heights. Traditional finance boundaries continue blurring as digital assets gain mainstream acceptance. The outcome will likely influence future political crypto initiatives regardless of election results.
〈Trump Media Enters Crypto ETF Arena: First Political Giant-Backed Mixed Fund Emerges〉這篇文章最早發佈於《CoinRank》。
