Truth Social, a subsidiary of Trump Media & Technology Group, has lodged an S-1 registration document with the U.S. Securities and Exchange Commission (SEC) for the initiation of a ‘Crypto Blue Chip’ exchange-traded fund (ETF).
If given the green light, the trust’s holdings will “primarily be composed of Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cronos (CRO)” — the Cronos blockchain’s native cryptocurrency, closely linked with the Crypto.com ecosystem — as per the preliminary prospectus. The initial distribution is anticipated to mirror value percentages of 70% BTC, 15% ETH, 8% SOL, 5% CRO, and 2% XRP, notes the submission.
Previously, Truth Social submitted applications for a standalone Bitcoin ETF in June, swiftly followed by an application for a combined Bitcoin and Ethereum ETF.
Just like the previous submissions, the “Truth Social Crypto Blue Chip ETF” is backed by Yorkville America Digital, with Foris DAX Trust Company acting as the custodian for the digital assets, as per the submission. The ETF shares are expected to be listed on the New York Stock Exchange Arca.
Earlier this year, Trump Media entered a binding contract with Crypto.com and asset management firm Yorkville America Digital for the launch of a series of ETFs. These are projected to include a range of digital assets and securities with a “Made in America” theme. In March, a controversial proposal to reissue 70 billion CRO ($6.9 billion) that was previously burned in 2021 was approved by Cronos, in line with Crypto.com’s plans for an ETF application.
Several other asset managers, including Bitwise, Grayscale, Franklin Templeton, and REX Shares, are also seeking the SEC’s approval for a number of spot crypto ETFs, featuring products focused on XRP, Solana, Dogecoin, Cardano, Avalanche, Hedera, Litecoin, and Polkadot. This surge comes in the wake of a new era for the organization under the pro-crypto Trump administration, with hopes of a more receptive stance than the previous Biden administration.
Disclaimer: The Block is an independent news outlet providing news, research, and data. Foresight Ventures, a major investor in other crypto companies, is a majority investor of The Block as of November 2023. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to produce objective, impactful, and timely crypto industry information independently. This article is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.
