Truth Social applies to launch an ETF tracking 5 types of cryptocurrency assets, planned to be listed on the New York Stock Exchange Arca
Latest news, the social media platform Truth Social, owned by former U.S. President Donald Trump, is striving to further expand its business into the cryptocurrency investment sector.
On July 8, Truth Social, through its parent company Trump Media Technology Group (TMTG), submitted an S-1 form to the U.S. Securities and Exchange Commission (SEC) to apply for a fund product named "Truth Social Cryptocurrency Blue-Chip ETF."
It is reported that this ETF is sponsored and promoted by the company Yorkville America Digital LLC, and plans to track the performance of five mainstream digital assets: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cronos (CRO). If approved, this ETF will be traded on the New York Stock Exchange Arca, with an issuance of 10,000 shares.
According to the application documents, the initial asset allocation of the ETF will be highly concentrated in Bitcoin, with BTC accounting for as much as 70%, ETH 15%, and the remaining portion allocated to XRP (8%), SOL (5%), and CRO (2%). Notably, only cash-based creations and redemptions will be supported in the initial phase; trading of physical assets will be considered only after obtaining approval from regulatory authorities in the future.
In terms of custody and pricing, Foris DAX Inc., a U.S. affiliate of Crypto.com, has been designated as the custodian and liquidity provider for the ETF. Meanwhile, leading cryptocurrency index provider CF Benchmarks will provide real-time pricing references for the ETF through its benchmark index based on the Chicago Mercantile Exchange (CME).
In addition, Truth Media and Yorkville also plan to launch two additional more focused cryptocurrency ETF products named "Truth Social Bitcoin ETF" and "Truth Social Bitcoin & Ethereum ETF" to meet the market's concentrated investment demand for BTC and BTC-ETH combinations; these two products are also seeking SEC approval.
Truth Social's major move into the cryptocurrency ETF sector underscores Trump's influence, which should not be underestimated. Analysts believe that this series of actions raises mainstream attention to cryptocurrencies and may stimulate an increase in market demand for cryptocurrency derivatives investment.
