On Tuesday, Trump Media & Technology Group (TMTG) filed an application with the Securities and Exchange Commission (SEC) for a new ETF based on a basket of cryptocurrencies, including Crypto.com’s CRO. Thanks to the news, the asset’s price skyrocketed by more than 22%.
CRO skyrockets after Trump Media announces new ETF
At the time of writing, Crypto.com’s CRO is trading at $0.09895, up 22.6% over the last 24 hours. To understand the main reason for this increase, we need to look at the latest S-1 filing by Trump Media & Technology Group (TMTG), one of Donald Trump’s companies, with its Truth Social brand. The group has applied to the Securities and Exchange Commission (SEC) to launch the Truth Social Crypto Blue Chip ETF, a fund that would track the prices of a basket of spot cryptocurrencies. The ETF is expected to be composed as follows:
- Bitcoin (BTC): 70%;
- Ethereum (ETH): 15%;
- Solana (SOL): 5%;
- CRO: 5%;
- Ripple (XRP): 2%.
This new development is in line with the demand for Truth Social ETFs, which already filed an S-1 registration statement last month for a 2/1 ETF on BTC and ETH. In early June, NYSE Arca filed its application to list the Truth Social Bitcoin ETF through a 19 b-4 filing.
Like other Truth Social ETFs, asset custody will be entrusted to Foris DAX, the parent company of the Crypto.com cryptocurrency exchange. In addition, no staking activity is currently planned for the fund’s various assets.
Thanks to the news of an ETF, CRO was able to print a green candle, reversing nearly a month of declines:
However, the asset remains down 59% since its last high in December, and even down 90% since its all-time high (ATH) of $0.96 on November 24, 2021.
Unlike CRO, it should be noted that the four other assets in the fund did not react particularly to the news, with the best performer in the basket (excluding CRO) being ETH, whose price rose 2.3% over 24 hours to $2,600 per unit.
