Cryptocurrency Information Bureau News: Trump Media applies for Bitcoin and Ethereum ETF! Investor expectations rise! #BitcoinETF #EthereumETF #TrumpMedia
Video explanation
Trump-affiliated company applies for Bitcoin and Ethereum ETF?! Easy-to-understand explanation for beginners!
Hello and welcome to John's easy blockchain introduction!
Today's topic is a bit of a surprising piece of news. A media company related to former US President Trump is apparently preparing to launch a new financial product. The financial product is something like "Bitcoin" or "Ethereum".Crypto assets (think of them as digital money or something that has value that can be used on the internet)It's something related to.
Some of you may be wondering, "What, Trump's company?" "What is an ETF anyway?" "I've heard of Bitcoin, but I don't really understand it..." Don't worry! If you read this article, you'll clearly understand what this news is about. Let's take a look together!
What does ETF mean anyway?
First, let me explain the keyword that will help you understand the news: ETF.
ETF is an acronym for "Exchange Traded Fund" and is called "Exchange-traded fundsIt's called "." It sounds difficult because it has a lot of kanji, but there's no need to worry.
Simply put, this isAn assortment pack of investments that can be easily bought and sold on the stock exchange (a market where anyone can buy and sell stocks, etc.), like stocks (the right to become a part of a company)."It's something like that.
For example, imagine a box of assorted sweets. It contains a little bit of every type of sweet, such as cookies, chocolates, and candies, so you can enjoy a variety of flavors in one box, right? ETFs are similar to that.
- A package that contains small amounts of stock from various companies
- A package that allows you to invest in commodities such as gold and oil
- A package that tracks a specific country's stock index (such as the Nikkei Stock Average)
There are various types of ETFs, such as the above. The reason this news is getting attention is that this ETF package contains two specific crypto assets, "Bitcoin" and "Ethereum."
The advantage of ETFs is that you can invest in multiple targets by purchasing one product.Diversification (a method of reducing risk by investing in a variety of things rather than investing in just one thing)The benefits include the ability to easily invest in combinations selected by experts.
What are "Bitcoin" and "Ethereum"?
Next, I will explain the contents of this ETF, Bitcoin and Ethereum, for complete beginners.
Bitcoin
Many of you may have heard the name "Bitcoin" in the news.
this is,The world's first and most famous cryptocurrencyIt first appeared in 2009.
As a feature,
- Digital Gold:It is sometimes called "digital gold" because it is limited in quantity and has the same value as real gold.
- No central administrator:It allows individuals to send and receive money directly from one another over the internet, without the need for an intermediary organization like a bank. The technology that supports this system is called "blockchain."
- Available worldwide:You may be able to send money across borders with relatively low fees.
Although it is often seen as an investment target, some stores also accept it as a means of payment.
Ethereum and Ether
Ethereum is the second most famous cryptocurrency platform (the underlying system) after Bitcoin.
The cryptocurrency used on this Ethereum platform is called "Ether (sometimes abbreviated as ETH)"
The main feature of Ethereum is that while Bitcoin is primarily used for monetary transactions, Ethereum can do much more than that.
- Smart Contract:This is translated as "intelligent contract," and is a program that automatically executes the contents of a contract when preset rules and conditions are met. For example, you can create a system where "if person A pays person B 1 Ether, the ownership of B's digital art will automatically be transferred to person A."
- Decentralized Applications (DApps):Using smart contracts, it is possible to create a variety of services and applications (games, financial services, etc.) that are not controlled by a specific company.
Ether is used as a fee for executing these smart contracts and using the Ethereum network.
What's in an ETF for companies linked to Trump?
Now, let's take a closer look at this news topic!
This time, the ETF application was submitted byTrump Media & Technology Group" This company operates "Truth Social," a social networking service launched by former President Trump.
This company is an AmericanSEC (US Securities and Exchange Commission) is a national agency that protects investors and sets rules for financial markets, similar to Japan's Financial Services Agency."I want to create and sell this kind of financial product!"Registration statementThe gist of this news is that they submitted the following.
The planned ETF is namedTruth Social Bitcoin and Ethereum ETF. "
And on the stock exchange:ITIt is expected to be traded under the abbreviation "ticker symbol."
The big feature of this ETF is what's inside.
- Bitcoin: 75%
- Ether (the Ethereum cryptocurrency): 25%
At this rate, the ETF itself will actually hold Bitcoin and Ether.Direct holding (i.e. buying and holding real crypto assets)It seems to be taking shape.
By buying shares (i.e. shares) in this ETF called “BT,” investors can indirectly invest in Bitcoin and Ethereum.
Why is this news getting so much attention?
Some of you may be wondering, "Is it really that amazing that Trump's company is releasing a cryptocurrency ETF?"
In fact, in the United States, several ETFs that directly hold Bitcoin (called spot ETFs) were approved in early 2024, which became a hot topic. This opened the way for many investors to invest in Bitcoin more easily.
Meanwhile, the Ethereum spot ETF was still waiting for approval. (Editor's note: This information is current as of the time of writing this blog, and is subject to change.)
In this context, the application for an ETF that includes not only Bitcoin but also Ethereum is an interesting development for the cryptocurrency market.
In addition, former President Trump himself has been rather cautious or even negative about cryptocurrencies in the past, but it has been reported that he has recently begun to take a more flexible stance toward the industry, participating in cryptocurrency-related events in the run-up to the presidential election.
Against this backdrop, the media company that bears his name has filed for a Bitcoin and Ethereum ETF.
- Crypto assets are becoming recognized as an accessible investment option for a wider range of investors.
- Interest in cryptocurrencies may also be growing from a political perspective
It may be suggesting.
However,This is just the "application" stageIt is unclear whether the SEC will approve this ETF. The SEC's decision will be closely watched.
A word from John
I was a bit surprised to see a company related to former President Trump apply for a cryptocurrency ETF! It's interesting that it combines not only Bitcoin but also Ethereum. Little by little, I feel that cryptocurrency is no longer something special, but is becoming more widely known as one of the options that will impact our lives and the economy. I'd like to continue watching how this trend develops in the future!
This article is based on the following original articles and is summarized from the author's perspective:
Trump Media Files to Launch Bitcoin and Ethereum
ETF