XRP News Today: Truth Social Files for Crypto ETF Boosting Cronos 12%

Truth Social, the media platform affiliated with US President Donald Trump, has submitted a new application to the US Securities and Exchange Commission (SEC) for a spot crypto exchange-traded fund (ETF). The proposed vehicle, titled the Truth Social Crypto Blue Chip ETF, aims to provide direct exposure to a basket of leading digital assets, including Bitcoin, Ethereum, Solana, XRP, and Cronos (CRO).

The news had a limited market impact on more established digital assets like Bitcoin, Ethereum, Solana, and XRP. However, it boosted Cronos’s value by more than 12% to a monthly high. According to the July 8 SEC filing, the ETF portfolio will be structured to hold approximately 70% Bitcoin, 15% Ethereum, 8% Solana, 5% Cronos, and 2% XRP by value. If approved, the ETF will be listed and traded on NYSE Arca, though the fund’s ticker symbol has not yet been disclosed.

The proposed ETF will operate as a passive investment vehicle, tracking the market prices of its underlying crypto without using leverage, derivatives, or speculative trading strategies. The fund will also participate in staking for assets such as Ethereum, Solana, and Cronos, enabling it to generate staking rewards. The filing names Crypto.com’s institutional arm, Foris DAX Trust Company, as the custodian responsible for safeguarding the fund’s assets. Yorkville America Digital Asset Management will act as the ETF’s sponsor, overseeing operations and compliance. CF Benchmarks Ltd., a well-known index provider, will be tasked with calculating and publishing US dollar valuations for the fund’s digital assets.

In addition, the Trust may allow in-kind transactions, where Authorized Participants exchange crypto directly for ETF shares, if the NYSE Arca receives the necessary regulatory approval. However, the timeline for this approval remains uncertain. This application follows Trump Media’s earlier filing for a separate spot Bitcoin and Ethereum ETF, which proposes a simpler 75% BTC and 25% ETH allocation. Both filings arrive as the SEC weighs a streamlined process for listing crypto ETFs, potentially signaling broader institutional adoption soon.

Nate Geraci, president of NovaDiusWealth, opined that the industry might not see any new ETF approval until this framework is implemented. He said: “Some issuers don’t believe this framework will be fully implemented until early fall. So, no spot crypto ETF approvals until then.”

This development underscores the growing interest in crypto ETFs and the potential for increased institutional investment in the digital asset space. The proposed ETF’s structure, which includes staking rewards, adds an additional layer of potential returns for investors. The involvement of well-known entities like Crypto.com and CF Benchmarks further lends credibility to the initiative. However, the approval process remains uncertain, and the industry awaits further guidance from the SEC on the streamlined process for listing crypto ETFs.