#Altcoin ETF Watch#  Trump Media has requested approval from the SEC for a cryptocurrency ETF.

Trump Media & Technology Group Corp has filed a new cryptocurrency exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission (SEC) via its social media platform. According to the application, Truth Social’s ETF aims to invest in a number of major crypto assets, primarily Bitcoin and Ethereum. The SEC began evaluating the application as of July 8.

The company first filed an ETF application with the SEC on June 16. The ETF is intended to allow investors to invest in Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, directly through shares traded on NYSE Arca. According to the application, the fund’s portfolio is planned to be approximately 75% Bitcoin and 25% Ethereum.

The fund’s performance assessment will be based on reference data

Truth Social’s application stated that the ETF’s performance assessment will be based on CME CF reference rates. With this method, Bitcoin and Ethereum rates will be determined by the aggregate evaluation of transaction data from major cryptocurrency exchanges. In this way, it is aimed to provide investors with more transparent and reliable pricing.

However, the fund’s sponsor company, Yorkville America Digital, also has the right to update these rates using its “unilateral discretion”. This will allow the fund’s composition to be reshaped according to changes in market conditions.

The new ETF comes with a broad portfolio.

The content of the new fund, which Trump Media calls the “Truth Social Crypto Blue Chip ETF,” was detailed in a preliminary prospectus published recently. Accordingly, approximately 70% of the fund’s assets will be Bitcoin. In addition, 15% Ethereum, 8% Solana, 5% Cronos (CRO) and 2% Ripple (XRP) will also be included in the ETF portfolio. This structure aims to offer investors a diversified investment opportunity through large-volume and widely known cryptocurrencies.

The inclusion of the CRO token is noteworthy because CRO had previously been on the agenda with the re-circulation of 70 billion burned tokens in 2021. Trump Media's close collaboration with CRO while preparing the ETF seems to have been effective in the selection of this token.

Acceleration in the crypto ETF process with the Trump Administration

The SEC had recently approved the listing of SOL and Staking ETF. This ETF became the first staking fund listed in the US and reached a volume of $ 33 million on its first day of trading. However, it was recently reported that the SEC asked the fund managers who applied for the spot Solana ETF applications to re-submit their documents by the end of July. Analyst James Seyffart, on the other hand, is skeptical about the possibility of the spot Solana ETF receiving approval.

While it is claimed that a cautious approach was taken towards cryptocurrencies during the Biden administration, it is stated that a more positive atmosphere has emerged in the regulations regarding crypto assets with the inauguration of the Trump administration. In this changing climate, the fact that startups like Truth Social have filed multiple ETF applications with the SEC demonstrates the impact of this expectation.