① The Trump Media Technology Group announced on Monday that it plans to launch an ETF that simultaneously invests in Bitcoin and Ethereum, and has submitted an application to the U.S. Securities and Exchange Commission; ② The document states that 75% of the ETF's assets will be invested in Bitcoin and 25% in Ethereum; ③ Analysts point out that the competition in the cryptocurrency ETF market is fierce, and the Trump Media Company can only stand out by winning on fees or brand.
Financial Associated Press, June 17 (Editor: Ma Lan) $Trump Media & Technology (DJT.US)$ On Monday, it was stated that the company plans to launch an Exchange-traded Fund (ETF) that will invest in both Bitcoin and Ethereum. The company has already submitted the relevant application to the U.S. Securities and Exchange Commission, marking its second application for a Crypto ETF in less than two weeks.
According to the documents submitted to the U.S. Securities and Exchange Commission, 75% of the funds for this new Crypto ETF will be allocated to $Bitcoin (BTC.CC)$ , while the remaining 25% will be used to purchase $Ethereum (ETH.CC)$ 。
The Singapore-based crypto exchange Crypto.com will act as the custodian, underwriter, and liquidity provider for the ETF.
If approved, the fund will join numerous cryptocurrency ETFs, including those managed by Blackrock, Grayscale, Fidelity, and Franklin Templeton. As of Monday, the scale of Bitcoin ETFs alone has reached 127.9 billion USD.
How to win?
Since its launch in January of last year, the Bitcoin ETF listed in the U.S. has accumulated a net inflow of 45.6 billion USD. According to statistics, the amount of Bitcoin held by the spot Bitcoin ETF has accounted for 25% of the global Bitcoin trading volume, showing the huge demand in the market for this asset.
However, the popularity of the Bitcoin ETF also means that the competition in this market is very fierce. Morningstar ETF analyst Bryan Armour stated that this poses a challenge for any new company entering the market, and the only way to stand out is through price or brand advantage.
Currently, Trump's media company has not announced the fee structure for the new ETF, but on average, the service fee for Bitcoin ETFs in the market is 0.12%.
CF Benchmarks CEO and Director Sui Chung stated that apart from the marketing approach, Trump's new ETF has nothing particularly special; however, this ETF may be marketed directly to individual investors and generate some "fan economy," similar to how people who love the iPhone might buy Apple stocks.
Editor/rice
