Truth Social Files for Crypto ETF with 70% Bitcoin Allocation

Truth Social, the social media platform backed by former U.S. President Donald Trump, has filed an S-1 registration statement with the Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) focused on cryptocurrencies. The proposed ETF, named the Truth Social Crypto Blue Chip ETF, aims to provide institutional investors with exposure to a basket of major cryptocurrencies. The fund will directly hold Bitcoin, Ether, Solana, Cronos, and Ripple, with a significant portion of its assets allocated to Bitcoin and Ether. According to the filing, 70% of the ETF's assets will be invested in Bitcoin, 15% in Ether, 8% in Solana, 5% in Cronos, and 2% in Ripple. This allocation strategy reflects the fund's focus on the top-performing cryptocurrencies in the market.

The Truth Social Crypto Blue Chip ETF is designed to track the performance of these five leading digital assets, offering investors a diversified exposure to the cryptocurrency market. By holding these assets directly, the ETF aims to provide a more straightforward and transparent investment vehicle compared to other crypto-focused funds that may use derivatives or other complex financial instruments. The fund is sponsored by Yorkville America Digital LLC, a subsidiary of Yorkville Capital Management, which has experience in managing digital asset investments.

The filing of the S-1 registration statement marks an important step in the expansion of Truth Social's offerings beyond its social media platform. The company has been actively exploring opportunities in the digital asset space, and the launch of this ETF is part of its broader strategy to capitalize on the growing interest in cryptocurrencies. The ETF's focus on major cryptocurrencies like Bitcoin and Ether aligns with the current market trends, where these two assets have consistently been the most popular and widely adopted digital currencies. The inclusion of Solana, Cronos, and Ripple in the ETF's portfolio adds diversification and exposure to other promising projects in the cryptocurrency ecosystem.

The proposed ETF is subject to regulatory approval from the SEC, and its launch will depend on the outcome of the review process. If approved, the Truth Social Crypto Blue Chip ETF will provide institutional investors with a new investment option in the cryptocurrency market, offering them a diversified exposure to some of the top-performing digital assets. The ETF's focus on major cryptocurrencies and its direct holding strategy make it an attractive option for investors looking to gain exposure to the cryptocurrency market without the complexities of managing individual digital assets.

This move by Truth Social follows a previous filing for a dual-spot Bitcoin and Ether ETF, which was submitted on June 16. That ETF, backed by assets held by Crypto.com, aims to allocate 75% of the fund to Bitcoin and the remaining 25% to Ether. The SEC has acknowledged the application, officially starting the review process for the proposed investment vehicle. The Truth Social Crypto Blue Chip ETF represents another high-profile attempt by the company to bring crypto exposure to retail and institutional investors using traditional equity markets.

The ETF will be structured as a Nevada business trust and 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. The trust’s shares will be listed on the New York Stock Exchange (NYSE) Arca after regulatory approvals. 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. Any changes to the allocation ratio will require an amendment to the agreement and regulatory approval.