- Truth Social filed to launch a crypto ETF tracking five major digital assets with a 70% Bitcoin allocation.
- The ETF will operate passively and include staking rewards for Ethereum, Solana, and Cronos.
- The fund awaits SEC approval before listing on NYSE Arca, with no set timeline for regulatory
Trump Media’s Truth Social has filed a new registration with the U.S. Securities and Exchange Commission (SEC) to launch a spot cryptocurrency exchange-traded fund. Named the Truth Social Crypto Blue Chip ETF, the proposed fund aims to provide exposure to a group of five prominent digital assets: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cronos (CRO), and XRP. If approved, the ETF will trade on NYSE Arca.
Truth Social Fund Composition and Structure
According to the July 8 filing, the ETF will allocate 70% of its holdings to Bitcoin. Ethereum will receive a 15% share, followed by 8% in Solana, 5% in Cronos, and 2% in XRP. The ETF will operate as a passive investment vehicle, tracking the market prices of its crypto holdings without using leverage or derivatives.
The trust will be set up as a Nevada business trust. Yorkville America Digital Asset Management has been named the sponsor. The firm will oversee operations and maintain regulatory compliance. CF Benchmarks Ltd. will calculate and publish the daily market value of each digital asset in U.S. dollars.
Custody and Staking Details
Crypto.com’s institutional arm, Foris DAX Trust Company, will act as the custodian of the fund’s assets. The ETF will allow for staking where applicable. Assets like Ethereum, Solana, and Cronos will be staked to generate rewards. These staking returns will be treated as part of the fund’s overall performance.
Shares of the ETF will be created and redeemed in blocks of 10,000 through authorized broker-dealers. In-kind transactions may also be permitted if the exchange secures the necessary regulatory approvals. This mechanism allows ETF shares to be exchanged directly for crypto assets, improving pricing efficiency.
Prior Filings and Market Response
This ETF application follows an earlier June 16 filing by Truth Social. That filing proposed a dual-spot ETF with a 75% allocation to Bitcoin and 25% to Ethereum. Both applications were submitted to the SEC and are now under formal review. The announcement of the Blue Chip ETF had a limited price impact on major tokens like BTC, ETH, SOL, and XRP.
However, Cronos (CRO) is the only one that has registered growth, as it jumped 16% to $0.09447 at the time of press. Truth Social Crypto Blue Chip ETF will start trading on NYSE Arca pending receiving SEC approval. This was stated in the filing that the fund will not be registered as an investment company, and it will not be classified as a commodity pool. The regulatory reviews are ongoing, and the schedule regarding its approval has not been established yet.
