A new stock market fund that follows the transactions of American politicians can be launched this week. The fund with the name Government Grift ETF (GRFT) offers investors the opportunity to act such as members of the congress and companies with direct links with the US president. The question is whether investors can actually achieve an advantage.
ETF follows transactions by congress members
According to Bloomberg analyst Eric Balchunas, the launch of GRFT is planned around Friday. The American stock market watchdog SEC has designated on Monday 3 October as the date on which the registration of Tuttle Capital Management, the Fund’s provider, will officially take effect.
The ETF is set up in such a way that transactions from congress members and their spouses are followed through publicly available stock ACT reports. In addition, the fund can invest in companies that have ties with the White House, or companies that receive recognition from the president. An ETF is a stock market fund that follows a basket of shares or other investments and that can be tradable, just like an ordinary share.
According to Tuttle’s documents, the fund will follow between 10 and 30 shares and ETFs. The weighting of positions depends on the size of the political transactions and the expected influence of presidential support. “The strategy is based on the conviction that political actors can influence or have information that influences races,” Tuttle said in the prospectus.
Trump’s billions in Bitcoin and Memecoins
Crypto might also be given a place in the selection. Trump has been connected to the sector for years. For example, his media company DJT is said to have 15,000 Bitcoin (BTC), with a value of more than 1.7 billion dollars. There are also ties with American Bitcoin Corp, a listed mining company. Furthermore, several memecoins have appeared that bear his name or that of his wife Melania.
Tuttle Capital already has several products in the market that respond to Crypto. This includes livered ETPs on coins such as XRP, Solana, Litecoin and Chainlink. A livered ETP is intended to strengthen price fluctuations of, for example, a crypto coin. Depending on the chosen factor, a small movement can grow to considerable profit, or a large loss.
The Timing of GRFT is striking, because the SEC has recently approved faster procedures for crypto-etf’s. According to Balchunas, that means that the chance of new spot crypto-etf’s is now “100 percent”. If GRFT does indeed start this week, the question is whether political insight actually gives investors a lead.
Source: https://newsbit.nl/government-grift-etf-beleggen-zoals-congresleden-en-het-witte-huis/
