US President Donald Trump’s media conglomerate, Trump Media and Technology Group, has filed paperwork with the United States Securities and Exchange Commission (SEC) for two new exchange-traded funds (ETFs) linked to major cryptocurrencies.
According to a Friday Announcement Through its Truth Social Funds arm, the company plans to launch the Truth Social Kronos (CRO) Yield Maximizer ETF as well as the Truth Social Bitcoin (BTC) and Ether (ETH) ETFs. The filing is not yet effective and is subject to SEC review.
“We intend to provide an investment platform for investors that covers multiple aspects of digital and crypto investing, including both capital appreciation and income opportunities,” said Steve Nemitz, president of Yorkville America Equities, which will serve as investment adviser to both funds.
The funds will be developed in partnership with crypto exchange Crypto.com, which is expected to provide custody, liquidity and staking services if regulators approve the product. Investors will access the ETFs through the exchange’s broker-dealer, Foris Capital US LLC. Each product is expected to incur a management fee of 0.95%.
Related: ETH ETF holders are in a ‘worse position’ than BTC ETFs as the crypto market continues to bear down
Proposed ETFs to track BTC, ETH and CRO with rewards
The Bitcoin and Ether Fund aims to track the combined performance of the two largest cryptocurrencies by market capitalization, while also capturing the staking rewards generated by Ether. The Cronos Yield Maximizer ETF, meanwhile, is designed to track the performance of CRO, the native token of Crypto.com’s Cronos blockchain, and includes stocking income.
Trump Media, known for running the Truth Social social network, has been quick to explore cryptocurrency initiatives.
In April of last year, Trump Media announced a deal with Crypto.com and Yorkville America Digital to launch a set of “Made in America” ETFs combining digital assets and traditional securities, including sectors such as energy.
In September, the firm also entered into an agreement with Crypto.com to create a joint treasury entity focused on collecting CRO tokens, starting with an initial purchase of approximately 684.4 million CRO worth approximately $105 million in a mix of stock and cash.
Related: Spot Bitcoin ETFs added $167M, nearly erasing last week’s outflow
Spot Bitcoin ETFs see weeks of consistent outflows.
Spot Bitcoin ETFs have seen net outflows for four consecutive weeks, with the latest weekly figure showing returns of $360 million. According to From SoSoValue to Data.
The figure also shows volatile but net negative flows in late January and early February. The largest recent withdrawals were $817.87 million on January 29, $509.70 million on January 30 and $544.94 million on February 4. The positive sessions were smaller, such as $561.89 million on February 2, $371.15 million on February 6 and $51.15 million on February 6. Only $145.00 million on February 9 is coming in at $15.20 million on Friday.
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