Truth Social Files for Bitcoin Ethereum ETF with 75% 25% Allocation

Truth Social, the social media platform associated with former U.S. President Donald Trump, has taken a significant step in the cryptocurrency investment landscape by filing an S-1 form with the U.S. Securities and Exchange Commission (SEC). This filing proposes the issuance and trading of the Truth Social Bitcoin and Ethereum ETF, a product designed to offer investors combined exposure to both Bitcoin (BTC) and Ethereum (ETH) through a single investment vehicle. The ETF is sponsored by Yorkville America Digital, LLC, a digital asset management firm based in Mountainside, New Jersey.

The proposed ETF will hold both Bitcoin and Ethereum directly, with 75% of its assets allocated to Bitcoin and 25% to Ethereum. This dual exposure product stands out from the typical single-asset ETFs, providing investors with a diversified approach to cryptocurrency investment. If approved, the ETF will be listed on the NYSE Arca exchange and is expected to trade under the ticker symbol B.T.

The filing outlines a trust format that would hold both cryptocurrencies, offering investors a straightforward way to gain exposure to the two largest digital assets by market capitalization. This move by Truth Social highlights the growing interest in cryptocurrency ETFs and the potential for diversified investment products in the digital asset space.

The proposed ETF is part of a broader trend in the financial industry, where investors are increasingly seeking ways to gain exposure to cryptocurrencies through regulated and transparent investment vehicles. By offering a combined allocation to Bitcoin and Ethereum, the Truth Social Bitcoin and Ethereum ETF aims to cater to investors who are interested in the potential growth of both cryptocurrencies but prefer the convenience and security of an ETF structure.

The filing of the S-1 form is a significant step towards the potential launch of the ETF, but it is subject to regulatory approval by the SEC. If approved, the ETF could provide a new avenue for investors to gain exposure to the cryptocurrency market, potentially attracting both retail and institutional investors. The proposed ETF's structure and allocation strategy reflect a growing recognition of the importance of diversification in the cryptocurrency space, as well as the potential for digital assets to play a significant role in the future of investing.

Truth Social has also mentioned that it plans to file an amendment with a summary of the terms of the prime execution agency agreement with Crypto.com later. The company is yet to finalize the details of the upcoming ETF, such as the fund’s ticker and its cash custodian. The ETF shares are proposed to be listed on the New York Stock Exchange Arca, according to the filing.

This filing follows the approval of Trump Media and Technology Group’s $2.3 billion Bitcoin treasury deal by the SEC on June 13. In the statement, the company said that it currently has “no immediate plans” to issue any securities under the deal. TMTG previously confirmed a $2.5 billion capital raise to purchase Bitcoin in late May after initially denying reports about the raise.