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The Future of Crypto ETFs: A British Perspective
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Trump Media’s Venture into Crypto ETFs
During a lively chat with executives at the Exchange conference in Las Vegas about the future of crypto ETFs, a rather intriguing revelation surfaced. Trump Media and Technology Group is aligning with Crypto.com to launch a suite of cryptocurrency funds. This partnership seemingly blooms from a previous meeting between Trump and Crypto.com’s CEO, Kris Marszalek, held in December. One can’t help but wonder if this collaboration was always on the cards.
Crypto.com initially teased its followers on X with a promise of three distinct ETF offerings. These products would include one ETF holding Bitcoin, another investing in both Bitcoin (BTC) and Ethereum (ETH), and a third featuring BTC, ETH, Solana, Cronos (CRO), and XRP. However, the post was later somewhat revised, simply hinting at a groundbreaking ETF basket that would feature CRO among other assets.
Uncertainty and Speculation
While the exact products weren’t unveiled, Trump Media’s previous applications in February for trademarks for Truth.Fi-branded ETFs herald intriguing possibilities. These funds, donning labels such as "Made in America" and "Bitcoin Plus," were earmarked to feature securities with a distinct "Made in America" focus. Yorkville Advisors were mentioned as the registered investment advisors for these ambitious forays.
Alas, specifics remain elusive. My inquiries seeking further clarity from both companies fell upon deaf ears. Yet, the addition of Crypto.com to this enterprise, supplying assets and custody for the ETFs, isn’t entirely unforeseen.
Industry Reactions
Nate Geraci, president of The ETF Store, mused on X, pondering Trump’s bold commitment to the crypto sector amid potential regulatory questions. Meanwhile, Bloomberg Intelligence’s James Seyffart expressed interest in Trump Media’s endeavours, albeit noting the absence of formal filings.
Samir Kerbage, CIO at Hashdex, shared insights following the announcement. He wasn’t taken aback by the increasing interest within the sector. Hashdex, a Brazil-based asset manager, is well-versed in encapsulating multiple crypto assets within a single wrapper, akin to what Trump Media and Crypto.com aspire to achieve.
Hashdex’s Ambitions and the Crypto Landscape
Hashdex recently launched the Hashdex Nasdaq Crypto Index US ETF, initially holding only Bitcoin and Ethereum. Their ambition is to replicate something akin to “the Nasdaq 100 for crypto.” Notably, they plan to meet with the SEC’s crypto task force, eager to expand their ETF wrap to possibly include additional assets.
Kerbage also predicted a grand vision where crypto indexing overtakes individual asset products. He envisages a future where U.S. crypto index ETFs accommodate hundreds of assets, totalling a market capitalisation of tens of trillions of dollars. Indeed, he believes Bitcoin, while significant, won’t be the defining crypto asset marking its value on society.
The Emerging Crypto Indexing Frontier
The discourse around crypto ETFs is riveting and reveals remarkable promise. Kerbage aptly observed that financial advisers can’t competently weigh every individual crypto asset. Indexing in this realm appears to be the "next frontier."
In conclusion, while the likes of Trump Media and Crypto.com continue to make waves, hashing out the specifics and navigating the regulatory waters will indeed be an intriguing journey to watch unfold.
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