Trump pushes new crypto ETF-with Solana and XRP
Truth Social is planning the next big step: a crypto ETF with BitcoinETH, Solana and more. The SEC has already received the first applications. But the legal way is not yet clear-Altcoin ETFs are controversial.
Nevertheless, the project in Trump's crypto empire is loudly promoted.
Trump's latest Altcoin ETF
Truth, an important part of President Trump's crypto empire, has prepared plans for the start of an ETF for several months. At the beginning of June, Nyse Arca submitted a form 19b-4 to a Bitcoin ETF Start under the company's brand name.
The new application, which was submitted today, follows a broader approach and contains several prominent old coins in addition to BTC.
According to the SEC submission If the new product from Truth Social would mainly be a Bitcoin ETF. 70 percent of the allocation would be omitted on this asset, 15 percent to ETH, 8 percent on SOL, 5 percent on cronos (CRO) and 2 percent to XRP. The company recently tried to create a common BTC/ETH ETF so that this old coin diversification is steadily increasing.
At first glance, it seems strange that Cronos, with a share of more than twice as much as XRP, occupies such a prominent position in the ETF. Ripple is in close contact with the president and XRP is a much more well -known token than Cro.
However Recently created friction between Trump and Rippleand Truth social has a contract with particular Crypto.com signed to promote old coin ETFs. If you take these two points into account, the absorption of cronos appears more understandable.
In addition, the cro course jumped by more than 15 percent after the news.
Nevertheless, Truth Social could encounter some obstacles to bring another ETF to Trump's crypto empire. Last week the SEC theoretically approved an Altcoin basket ETF, but immediately imposed a trade ban.
This product is now in a legal floating state without regular approval periods, and Truth Social could encounter similar problems.
In the meantime, the ETF is structured as “Nevada Business Trust”. This is a legal structure that is often used for investment funds. This facilitates the administration of the ETF and can help reduce legal and tax complications compared to other forms of company.
For the time being, this submission is reflected in Trump's business interest in the continued ETF extension. As long as this trend continues, a final approval seems likely.
The SEC has signaled in different ways that it is ready to work with new products and even one Simplified approval process for Altcoin ETF applications developed.
Disclaimer
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