President Donald Trump’s social media company announced on Tuesday plans to launch a new crypto exchange-traded fund (ETF) that will track the prices of five different cryptocurrencies.  The company filed paperwork with the US Securities and Exchange Commission (SEC) on Tuesday, aiming for approval to introduce the “Crypto Blue Chip ETF” later this year. New Crypto Blue Chip ETF The proposed crypto ETF is designed to allocate 70% of its holdings in Bitcoin (BTC), the leading cryptocurrency, with an additional 15% in Ethereum (ETH), the second-largest digital asset.  It will also include 8% in Solana (SOL), hold 5% in XRP, the cryptocurrency developed by Ripple Labs, and 2% in the digital asset created by Crypto.com (CRO), which is set to serve as the ETF’s digital custodian. This latest offering follows Trump Media’s earlier announcements about a simpler crypto ETF that only included Bitcoin and Ethereum. However, it remains unclear whether the company intends to proceed with that initial concept. Crypto ETFs have surged in popularity, providing investors a streamlined way to gain exposure to the crypto market without the need to purchase the assets directly. The increasing interest in these funds has been evident since the first Bitcoin ETFs began trading in US markets last year. Trump’s Crypto Strategy For The US Recent developments in regulatory guidance from the SEC could further facilitate the launch of such products. The agency has made moves towards creating a more favorable environment for crypto businesses, including dropping or pausing several enforcement actions against crypto companies since Trump took office.  Over the past month, the regulatory agency, under the leadership of pro-crypto SEC Chairman Paul Atkins, has moved forward to end legal disputes with key players, such as Binance, Coinbase, and Uniswap. Interestingly, Trump’s stance on Bitcoin has evolved significantly as well. Once a skeptic of cryptocurrencies, he has since embraced the industry, which has become a source of substantial campaign contributions and support.  While the Trump administration has actively supported crypto-friendly regulations, this has raised eyebrows among critics. Allegations of potential corruption have emerged from Democrats, alongside concerns from some within the crypto community about the implications of Trump’s family’s expanding crypto business ventures. At a recent news conference, Trump addressed these concerns, asserting that his family’s investments were entirely appropriate and highlighting his administration’s commitment to making the US the global leader in cryptocurrency. “If we didn’t have it, China would,” the President said.  At the time of writing, the official TRUMP memecoin is trading at $8.58. This represents a 17% drop over the past month and an 88% drop from its record high of $73, which was reached 24 hours after the token’s launch. Featured image from DALL-E, chart from TradingView.com

Trump Media & Technology Group, the company behind the social media platform Truth Social, is reportedly planning to raise around $3 billion to invest in cryptocurrencies, including Bitcoin (BTC).  This move, highlighted in a recent Financial Times report, aims to secure $2 billion in fresh equity and an additional $1 billion through a convertible bond. However, the details surrounding this capital raise, including its timing and size, may still be subject to change. Trump Media Dismisses Reports As ‘Fake News’ In response to inquiries regarding the report, the President’s media company dismissed both Reuters and the Financial Times as “fake news” outlets, while the White House has not yet commented on the matter.  The company has been actively exploring potential mergers and acquisitions to diversify its offerings into financial services, signaling a strategic shift beyond its original social media focus. Last month, Trump Media reached a binding agreement to launch various retail investment products, aligning with Trump’s America First policies.  These products are expected to include cryptocurrency investments and exchange-traded funds (ETFs), although the initiative has drawn scrutiny from government ethics and regulatory authorities. The anticipated capital raise, yet to be publicly confirmed by the President’s working group, is set to coincide with a major meeting for cryptocurrency investors and advocates this week, where figures such as Vice President JD Vance and Trump’s sons, Donald Jr. and Eric, are expected to speak.  Critics Slam The President’s Cryptocurrency Dinner  This meeting follows an exclusive dinner hosted by President Trump for top investors in his cryptocurrency memecoin, TRUMP, held at his golf club outside Washington, D.C.  This event attracted approximately 220 of the largest purchasers of the TRUMP memecoin, which was launched just days before Trump’s inauguration.  Critics have labeled the dinner as a glaring example of corruption and conflict of interest, with protesters gathering outside the venue holding signs that read “stop crypto corruption” and “no kings.” Democratic Senator Elizabeth Warren and other opponents condemned the dinner during a press conference, branding it an “orgy of corruption.”  The ethical implications of Trump’s ventures into the cryptocurrency space have raised significant concerns among critics, particularly regarding the intersection of politics and personal profit. Beyond his personal investments, Trump’s family is also heavily involved in the cryptocurrency sector. Donald Jr. and Eric Trump have been engaged in various ventures, including American Bitcoin, a new Bitcoin mining company in collaboration with Hut 8.  At the time of writing, the market’s leading cryptocurrency, Bitcoin, trades just above the $109,400 mark, registering a notable 15% surge in the monthly time frame.  The President’s official memecoin, on the other hand, records a 19% drop toward $12.71 in the same period, as the exclusive dinner party failed to boost the token’s price.  Featured image from CNBC, chart from TradingView.com