Trump Media & Technology Group’s social media platform Truth Social has taken another big step into the cryptocurrency market. The company has filed a formal application with the U.S. Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) called the “Crypto Blue Chip ETF.” The ETF is planned to consist of five major crypto assets: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cronos (CRO), and Ripple (XRP).
Truth Social has filed an ETF application
According to the preliminary prospectus submitted by Truth Social, the fund’s asset allocation will be as follows: 70% BTC, 15% ETH, 8% SOL, 5% CRO, and 2% XRP. This allocation aims to offer significant exposure not only to Bitcoin but also to other major altcoins, unlike traditional crypto investment funds. The fund’s digital asset custody operations will be handled by Foris DAX Trust Company, which is affiliated with Crypto.com.
This application is not Truth Social's first move in the crypto ETF space. As you may recall, the company also applied for a spot ETF focused solely on Bitcoin in June. Then came a second application for a Bitcoin-Ethereum combined ETF that also included Ethereum. The sponsor of all these products is digital asset management firm Yorkville America Digital. The ETF shares are planned to be traded on the NYSE Arca exchange.
Truth Social's ETF application reveals not only the company's strategic vision, but also the Trump administration's positive approach to crypto assets. In fact, the SEC is expected to have a crypto-friendly attitude compared to the previous Biden administration in the current period. For this reason, it is thought that Truth Social's applications may be concluded more quickly and positively.
ETF applications for many altcoins await approval
In addition, Truth Social's ETF initiative is not alone. Major asset managers such as Bitwise, Grayscale, Franklin Templeton and REX Shares have also filed applications with the SEC for ETF products based on various crypto assets such as XRP, Solana, Dogecoin, Cardano, Avalanche, Hedera, Litecoin and Polkadot. The crypto assets chosen by Truth Social are noteworthy. The inclusion of Bitcoin and Ethereum as market leaders was an expected move. While Solana stands out with its speed and low transaction costs, Cronos stands out as part of Crypto.com's decentralized ecosystem. The inclusion of XRP is considered a very ambitious choice despite the long-standing litigation between the SEC and Ripple. In light of these developments, all eyes have turned to the SEC again. Whether Truth Social's "Crypto Blue Chip ETF" application will be accepted and how it will respond to other multi-asset ETF projects is eagerly awaited.
