Truth Social Initiates Crypto ETF Proposal
By: Isha Das
Truth Social, a media platform associated with Donald Trump, has taken a significant step in the realm of digital assets by filing an application with the US Securities and Exchange Commission (SEC) to launch a crypto exchange-traded fund (ETF). The proposed ETF, named "Truth Social Crypto Blue Chip ETF," aims to offer investors direct exposure to a collection of leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cronos (CRO). The ETF is designed to provide a passive investment vehicle that tracks the market prices of these digital currencies without using leverage or engaging in speculative trading activities.
The underlying assets within this fund are set to be allocated as follows: approximately 70% in Bitcoin, 15% in Ethereum, 8% in Solana, 5% in Cronos, and 2% in XRP. The filing mentions that the ETF, upon approval, would list on NYSE Arca, though the ticker symbol remains undisclosed. The ETF intends to generate additional income by participating in staking programs for Ethereum, Solana, and Cronos, allowing it to potentially yield rewards in tandem with the market performance of these assets.
In its filing, Truth Social has outlined that Crypto.com’s institutional arm, Foris DAX Trust Company, will act as the custodian safeguarding the fund’s assets. Furthermore, Yorkville America Digital Asset Management will sponsor the ETF, handling its operational and compliance obligations. Renowned index provider CF Benchmarks Ltd. is set to be responsible for valuing the cryptocurrencies in dollars, thereby bolstering transparency and reliability for investors.
This move by Truth Social follows its earlier attempt to file for a simpler ETF incorporating just Bitcoin and Ethereum, with a proposed allocation of 75% BTC and 25% ETH. These actions coincide with the SEC considering a more streamlined process for listing such financial products, highlighting a potential shift towards greater institutional involvement in the cryptocurrency space. Observers suggest that while no approvals are immediate, this initiative could herald broader acceptance and validation of crypto assets within traditional financial frameworks.
