Trump Media & Technology Group (TMTG) has filed with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that will invest in both Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies.
Bryan Armour, an ETF analyst at Morningstar, emphasized the hurdles faced by new entrants in this sector. “It will be a challenge for any new entrant in this market,” he noted, adding that the primary ways to stand out will be through competitive fees or strong branding.
The latest filing also specifies an allocation strategy between Bitcoin and Ethereum, indicating that the fund will initially hold three Bitcoin for every Ethereum token.
Sui Chung, CEO and chairman of CF Benchmarks, pointed out that the unique aspect of these ETFs may lie in their marketing strategy:
There is little that is different about this new venture other than the way it could be markete. Given Truth Social’s involvement, it may very well be that (these) are marketed directly to individual investors and that this ends up getting attention from those investors in the same way that people who love their iPhones buy Apple stock
Ethereum, on the other hand, trades at approximately $2,613 per token. It has recorded gains of a little over 5% in the past thirty days and has been one of the best performers for June so far.
Nevertheless, ETH remains well below its record high, which was reached nearly four years ago. There is a 46% gap between the current price and the record high of $4,878.
Featured image from DALL-E, chart from TradingView.com
