Trump Media-supported media outlet Truth Social has filed an S-1 registration with the United States Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) focused on cryptocurrency. The ETF, named the “Truth Social Crypto Blue Chip ETF,” will track the performance of a basket of the top digital assets, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Cronos (CRO), and XRP.
ETF Allocation Breakdown
According to the filing, the ETF will allocate the proportionate percentage to the following cryptocurrency:
- 70% to Bitcoin (BTC)
- 15% to Ether (ETH)
- 8% to Solana (SOL)
- 5% to Cronos (CRO)
- 2% to XRP (XRP)
The underlying assets will be kept by a custodian, and any change to the proportionate ratio will have to be amended and cleared by regulators.
NYSE Arca Listing Subject to Regulatory Approval
Once the regulatory process is complete, the shares of the ETF will be listed on the NYSE Arca, a major exchange for ETFs. This is the latest move by Truth Social to introduce crypto exposure to mainstream equity markets, offering retail and institutional investors an easy way to gain exposure to top cryptocurrencies through a known exchange.
An Innovative Way to Invest in Crypto
The ETF will not be deemed a registered investment company and thus will not fall under the regulation of the Commodity Futures Trading Commission (CFTC). Rather, shares will be issued and redeemed in blocks of 10,000 through authorized broker-dealers, which will maintain the ETF’s price in tandem with its underlying crypto assets.
Truth Social’s Growing Crypto Portfolio
The new ETF filing follows an earlier filing by Truth Social to list a dual-spot Bitcoin and Ether ETF, filed earlier this month. The dual-asset ETF, which puts 75% of its investments in Bitcoin and 25% in Ether, also awaits SEC review.
