Bitcoin, Ether and Cronos in new ETFs from Trump Media
Trump Media & Technology Group (TMTG) has filed applications with the US Securities and Exchange Commission (SEC) for two new cryptocurrency ETFs. These funds will be tied to major cryptocurrencies - Bitcoin and Ethereum, as well as Cronos - a crypto project from the Ethereum ecosystem.
This is not the first attempt by Trump Media to enter the cryptocurrency ETF market. The company has previously filed applications for the listing of several funds linked to digital assets, but none of these offerings have been approved by the regulator so far.
Interestingly, the news about new filings from Trump Media coincided with data on inflows/outflows of funds in US spot Bitcoin ETFs. According to CoinShares, over the past four weeks there has been a net outflow of around $360 million from such funds.
This may indicate a cooling of investor interest in cryptocurrency ETFs against the backdrop of the ongoing "crypto winter" and overall market instability. Nevertheless, Trump Media appears to be counting on the new funds finding their investors and gaining demand.
Expert opinion
Despite the current outflow of funds from Bitcoin ETFs, we expect the long-term trend to be positive. Cryptocurrencies are gradually becoming more mainstream, and institutional investors are increasingly entering this market. New ETFs from Trump Media could serve as a driver for inflows, especially if they are targeted at a wider audience of retail investors.
At the same time, regulatory risks remain high, and the SEC's approval of new crypto funds is by no means a guaranteed outcome. Therefore, investors should approach such products very carefully and maintain diversification in their portfolios.