Truth Social applies to launch an ETF that tracks 5 types of encryption assets, planned to be listed on the NYSE Arca.

Latest news, the social media platform Truth Social, owned by U.S. President Donald Trump, is striving to further expand its business into the field of encryption investments.

On July 8, Truth Social, through its parent company Trump Media & Technology Group (TMTG), submitted an S-1 form to the U.S. Securities and Exchange Commission (SEC) to apply for a fund product named "Truth Social encryption cryptocurrency blue-chip stock ETF."

According to reports, this ETF is sponsored and promoted by the company Yorkville America Digital LLC, and plans to track the performance of five mainstream digital assets: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cronos (CRO). If approved, this ETF will be listed on the New York Stock Exchange Arca, with a unit issuance of 10,000 shares.

According to the application documents, the initial asset allocation of the ETF will be highly concentrated in Bitcoin, with BTC accounting for up to 70%, ETH for 15%, and the remaining portion allocated to XRP (8%), SOL (5%), and CRO (2%). It is worth noting that during the initial issuance, only cash-based creation and redemption will be supported, and the trading of physical assets will be considered only after obtaining approval from regulatory authorities in the future.

In terms of custody and pricing, Crypto.com's US affiliate Foris DAX Inc. has been designated as the custodian and liquidity provider for the ETF. At the same time, leading cryptocurrency index provider CF Benchmarks will provide real-time pricing references for the ETF through its benchmark index based on the Chicago Mercantile Exchange (CME).

In addition, Truth Media and Yorkville plan to launch two more focused encryption ETF products, named "Truth Social Bitcoin ETF" and "Truth Social Bitcoin & Ethereum ETF", to meet the market's demand for more concentrated investments in BTC and BTC-ETH combinations. These two products are also seeking approval from the SEC.

Truth Social is making a significant move into the encryption ETF sector, and the influence of Trump behind it cannot be underestimated. Analysis suggests that this series of actions has increased mainstream attention on encryption currencies and may stimulate rising market demand for investment in encryption derivatives.

#Cryptocurrency ETF