Trump Media’s Truth Social has filed an S-1 registration with the United States Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tracking multiple blue-chip crypto assets.
According to a Tuesday filing, the “Truth Social Crypto Blue Chip ETF,” will track the performance of a basket of top crypto assets, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Cronos (CRO) and XRP (XRP).
The preliminary prospectus said the ETF will allocate 70% of its holdings to BTC, 15% to ETH, 8% to SOL, 5% to CRO and 2% to XRP. A custodian will hold the underlying assets, and any changes to the allocation ratio will require an amendment to the agreement and regulatory approval.
The investment vehicle is structured as a Nevada business trust and is sponsored by Yorkville America Digital.
Truth Social ETF to list on NYSE Arca after approvals
According to the filing, the trust’s shares will be listed on the New York Stock Exchange (NYSE) Arca after regulatory approvals.
The crypto ETF filing marks the latest high-profile attempt from Truth Social to bring crypto exposure to retail and institutional investors using traditional equity markets.
The filing said that the ETF will not operate as a registered investment company and will not be subject to the Commodity Futures Trading Commission (CFTC) rules as a commodity pool.
Instead, the ETF will issue and redeem shares in blocks of 10,000 through authorized broker-dealers. This process helps keep the ETF’s price close to the value of its underlying crypto assets.
Related: Trump Media Group reverses stance, confirms $2.5B Bitcoin capital raise
Truth Social’s Blue Chip ETF follows BTC, ETH ETF application
Truth Social’s move to apply for an ETF tracking a basket of top crypto assets follows the company’s move to apply for a dual-spot Bitcoin and Ether ETF.
On June 16, Truth Social filed a different S-1 registration for the dual-spot Bitcoin and Ether ETF, backed by assets held by Crypto.com.
The trust seeks to provide exposure to both assets and remove complexities stemming from buying the crypto directly. It will allocate 75% of the fund to Bitcoin and the remaining 25% to Ether.
On Monday, the SEC acknowledged the application, officially starting the review process for the securities regulator to decide on the proposed investment vehicle.
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