The Truth Social platform, associated with Donald Trump, has filed an application with the U.S. Securities and Exchange Commission (SEC) to register a new exchange-traded fund that will track major cryptocurrencies. The new product is named Truth Social Crypto Blue Chip ETF. It will invest in several key digital assets and is expected to list on the NYSE Arca once approved by regulators.
Fund Composition and Investment Structure
According to the filing, the fund will allocate its assets as follows:
- 70% of the portfolio will go to Bitcoin (BTC),
- 15% to Ethereum (ETH),
- 8% to Solana (SOL),
- 5% to Cronos (CRO),
- and 2% to XRP.
All cryptocurrencies will be held by a custodian, and any changes to the allocation structure will require amendments to the agreement and fresh approval from the regulator.
The fund is structured as a business trust in the state of Nevada and will be sponsored by Yorkville America Digital. Its shares are set to be listed on the NYSE Arca. The ETF will not be registered as an investment company and will not fall under the regulation of the Commodity Futures Trading Commission (CFTC) as a commodity pool.
It is also noted that the Truth Social Crypto Blue Chip ETF will issue and redeem shares in lots of 10,000 units through authorized broker-dealers. This mechanism is designed to keep the ETF price close to the actual value of the underlying crypto assets.
This is not Truth Social's first attempt to enter the crypto-themed ETF market. On June 16, the company also filed an application with the SEC to register a dual spot ETF tracking Bitcoin and Ethereum. According to that proposal, the fund would invest 75% of its capital in BTC and 25% in ETH. The assets are expected to be held on the Crypto.com platform. The SEC has accepted the application and has initiated the review process for the new investment vehicle.
Truth Token
In May, Truth Social announced plans to launch its own cryptocurrency token. Reports indicated that the project is being developed with the involvement of the team previously behind the TRUMP token and will become part of the platform’s broader tokenomics. News of the token launch coincided with a wave of controversies surrounding TRUMP, drawing additional attention to the project.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.