Trump Media Files for Bitcoin-Ethereum ETF, Sparking 47% Token Surge

Trump Media & Technology Group has submitted an S-1 registration statement to the Securities and Exchange Commission (SEC) for the “Truth Social Bitcoin and Ethereum Spot ETF.” This fund is set to be the first cryptocurrency ETF launched by a former U.S. President’s affiliated company, with a unique asset allocation of 75% Bitcoin and 25% Ethereum. The fund will be listed on the NYSE Arca, with Crypto.com serving as the exclusive custodian and staking service provider, and Yorkville America Digital acting as the underwriting institution.

The fund introduces several innovations compared to traditional institutional Bitcoin ETFs. Firstly, it will return Ethereum staking-generated income to investors, a feature absent in spot ETFs issued by institutions like BlackRock and Fidelity. Secondly, it offers dual liquidity protection through Crypto.com’s asset custody and liquidity provision, combined with Yorkville’s market-making support. Lastly, the fund is deeply integrated with the Truth Social platform, suggesting potential exclusive benefits for holders, such as premium platform features.

The application faces dual approval hurdles from the SEC, requiring both S-1 registration statement approval and a 19b-4 form for market rule changes. The announcement sparked immediate market reactions, with the Trump-concept token TRUMP (MAGAPEPE) prices soaring 47%, Crypto.com platform token CRO rising 15% in a single day, and Intercontinental Exchange (ICE) stock gaining 3.2%. This move is seen as a key test of the SEC’s political neutrality, as the Biden administration has rejected dozens of crypto ETF applications.

During the countdown to the U.S. election, this move contains strategic political calculations. It aims to compete for key voter groups, as crypto holders represent over 20% of swing state voters. The choice of Crypto.com over Coinbase as a partner signals subtle geopolitical positioning, with Crypto.com focusing mainly on Asian markets. This ETF strategy could also force regulatory policy shifts, potentially accelerating the approval of other mixed ETFs if Trump wins the election.

The SEC approval process is expected to take 5-8 months, with a latest deadline by March 2025. Existing ETF issuers like Grayscale may adjust their product strategies to meet the competition posed by this new fund. The filing represents a watershed moment where political influence directly intersects with cryptocurrency markets, challenging traditional boundaries between politics and finance. If approved, it could establish new precedents for political figure involvement in crypto markets, with the unique 75-25 Bitcoin-Ethereum split and staking reward distribution feature standing out as innovations.

Crypto.com’s selection as custodian signals strategic positioning, appealing to international investors while avoiding domestic political complications. Market reactions demonstrate investor enthusiasm for political crypto endorsement. However, regulatory approval remains uncertain given the current SEC positions. This development represents political crypto adoption reaching new heights, with traditional finance boundaries continuing to blur as digital assets gain mainstream acceptance. The outcome will likely influence future political crypto initiatives regardless of election results.