Donald Trump's Trump Media and Technology Group (DJT) plans to launch a new exchange-traded fund (ETF) that simultaneously includes Bitcoin and Ethereum. The company plans to allocate 75% of its total assets to Bitcoin and the remaining 25% to Ethereum, setting the launch target for the end of this year. Following the previous plan to launch a Bitcoin-only ETF, this is an expansion to include two major cryptocurrencies in one product.
Trump Media is the parent company of the conservative-leaning social media platform 'Truth Social', expanding its digital ecosystem targeting Trump's core supporter base. This ETF plan is interpreted as an extension of that strategy. The company had previously announced its entry into the ETF business through a partnership with cryptocurrency exchange Crypto.com in March, and last month raised funds for Bitcoin purchases, establishing an operational foundation.
However, market reactions are somewhat lukewarm. Trump Media and Technology Group's stock price dropped nearly 4% on the day of the announcement, closing below $19, and has fallen over 40% this year. Bitcoin, the cryptocurrency market leader, is currently trading around $109,000, while Ethereum has exceeded $2,600.
This ETF launch plan is noteworthy for adding another politically charged approach to the cryptocurrency market. Especially as Trump has recently increased his statements about cryptocurrency regulation in the US and continues to show a friendly approach to the industry, there is growing interest in how his political influence might impact these digital assets.
As an ETF is a product listed on the securities market that can be traded in real-time like regular stocks, attention is also focused on which custodian and management company Trump Media will use to go through regulatory approval. The decision is being analyzed as a potential signal breaking down the boundaries between traditional finance and cryptocurrencies, while also being evaluated as merely a political marketing tool.
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