Trump Media Submits BTC, ETH, Cronos ETF Applications to SEC

The media conglomerate associated with United States President Donald Trump, known as Trump Media & Technology Group, has submitted official documents to the United States Securities and Exchange Commission (SEC) seeking approval for two innovative exchange-traded funds (ETFs) that are directly connected to some of the most prominent cryptocurrencies in the market.

Through its specialized division, Truth Social Funds, the company made this announcement on a recent Friday. The proposed offerings include the Truth Social Bitcoin (BTC) and Ether (ETH) ETF, as well as the Truth Social Cronos (CRO) Yield Maximizer ETF. At this stage, the filings are preliminary and have not become effective; they are currently pending thorough examination and approval by the SEC regulators.

Steve Neamtz, who serves as the president of Yorkville America Equities—the entity designated to function as the investment adviser for these two funds—elaborated on the vision behind these products. He stated that the initiative aims to establish a comprehensive investment platform tailored for investors interested in various dimensions of digital assets and cryptocurrency markets. This platform is intended to offer opportunities not only for capital growth but also for generating steady income streams.

Proposed ETFs to track BTC, ETH and CRO with staking rewards

The ETF focused on Bitcoin and Ether is structured to mirror the overall performance of these two leading cryptocurrencies, which hold the top positions by market capitalization. In addition to tracking price movements, this fund will incorporate staking rewards specifically derived from Ether holdings, providing an extra layer of yield for participants. On the other hand, the Cronos Yield Maximizer ETF is crafted to follow the price trajectory of CRO, the foundational token powering the Cronos blockchain developed by Crypto.com. This particular fund will also integrate income generated through staking activities involving CRO tokens.

Trump Media, which gained widespread recognition primarily through its operation of the Truth Social social media platform, has been progressively venturing into the realm of cryptocurrency-related projects and initiatives over recent times. This strategic expansion reflects a broader interest in blending traditional media influence with emerging blockchain technologies.

Looking back approximately nine months to April of the previous year, Trump Media revealed a significant partnership agreement involving Crypto.com and Yorkville America Digital. This collaboration was aimed at introducing a series of ETFs branded as ‘Made in America,’ which cleverly combined exposure to digital assets with investments in conventional securities. These ETFs targeted diverse sectors, including the energy industry, thereby appealing to a wide array of investor preferences.

Further building on this momentum, in September, the company forged another key agreement with Crypto.com. This deal centered on establishing a shared treasury vehicle dedicated to accumulating substantial holdings of the CRO token. The arrangement kicked off with an initial acquisition of around 684.4 million CRO tokens, valued at approximately $105 million, funded through a combination of equity issuance and direct cash payments.

These new ETF proposals are being developed collaboratively with the cryptocurrency exchange Crypto.com. Should the regulators grant their approval, Crypto.com would take on critical responsibilities such as providing secure custody for the underlying assets, ensuring sufficient market liquidity, and facilitating staking operations to generate yields. Investors interested in these ETFs would gain access via the broker-dealer arm of the exchange, Foris Capital US LLC. Both products are projected to levy a management fee of 0.95% on assets under management, positioning them competitively within the growing field of crypto investment vehicles.

Spot Bitcoin ETFs see weeks of consecutive outflows

In a contrasting development within the broader cryptocurrency ETF landscape, spot Bitcoin ETFs have encountered a challenging period marked by four successive weeks of net capital outflows. The most recent weekly data indicates that investors withdrew roughly $360 million from these funds, underscoring a temporary shift in sentiment amid fluctuating market conditions.

Spot Bitcoin ETFs outflow streak. Source: SoSoValue

Detailed analytics from SoSoValue reveal a pattern of volatility combined with an overall net-negative flow throughout the latter part of January and the early days of February. Among the most substantial withdrawal episodes were outflows totaling $817.87 million on January 29, followed by $509.70 million on January 30, and $544.94 million on February 4. While there were intermittent positive days, these inflow periods were comparatively modest in scale. For instance, $561.89 million entered the funds on February 2, $371.15 million on February 6, $166.56 million on February 10, and $145.00 million on February 9. The week closed with a minimal inflow of just $15.20 million on the preceding Friday.

This backdrop of outflows in established Bitcoin ETFs arrives as Trump Media pushes forward with its ambitious filings for diversified crypto exposure, potentially signaling renewed institutional interest in innovative products that blend leading assets like BTC and ETH with yield-generating opportunities from tokens such as CRO. The SEC’s forthcoming decisions on these applications could play a pivotal role in shaping the trajectory of cryptocurrency investment products in the United States, especially as market participants navigate ongoing volatility and evolving regulatory landscapes.

As the cryptocurrency sector continues to mature, initiatives like those from Trump Media highlight the increasing convergence between high-profile media entities and blockchain innovation. Investors will be closely monitoring regulatory responses, given the potential for these ETFs to broaden access to digital assets while offering mechanisms for passive income through staking—a feature that distinguishes them from purely spot-tracking counterparts currently facing redemption pressures.