Truth Social files with SEC for Crypto Blue Chip ETF tracking BTC, XRP, SOL

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Key Takeaways

Trump-backed Truth Social is seeking regulatory approval to launch a crypto blue chip ETF backed by major crypto assets like Bitcoin and Ethereum.
The prospective ETF’s shares will trade on NYSE Arca if approved.

Truth Social, part of the President Donald Trump-owned group, Trump Media & Technology Group (TMTG), on Tuesday filed a Form S-1 with the SEC for a new investment product called Truth Social Crypto Blue Chip ETF.

Sponsored by Yorkville America Digital LLC, the fund aims to track five leading digital assets, including Bitcoin, Ethereum, Solana, Cronos, and XRP, initially weighted at 70%, 15%, 8%, 5%, and 2% respectively.

The ETF will be listed on NYSE Arca and rebalanced quarterly to maintain target allocations. Foris DAX Inc., an affiliate of Crypto.com, will serve as the fund’s liquidity provider and rebalancing agent.

“The Trust is a passive investment vehicle that seeks to reflect generally the performance of the prices of the Portfolio Assets before payment of the Trust’s expenses and liabilities,” the filing states. The fund will issue shares in blocks of 10,000 that can be created and redeemed by authorized participants.

The fund’s digital assets will be held in custody by Foris DAX Trust Company LLC, with private keys stored primarily in cold storage. CF Benchmarks Ltd. will calculate daily reference prices for the underlying crypto assets.

Trump Media & Technology Group Corp., which operates Truth Social, Truth+ streaming, and Truth.Fi fintech platforms, will serve as the fund’s licensor. The company has existing business relationships with affiliates of the fund’s sponsor Yorkville.

This is a developing story.