Truth Social Eyes Bitcoin-Ethereum ETF
Truth Social Seeks SEC Approval for Bitcoin-Ethereum ETF
Truth Social, a social media platform associated with the Trump Media & Technology Group (TMTG), has filed a Form S-1 with the Securities and Exchange Commission (SEC) for a proposed exchange-traded fund (ETF) offering exposure to both Bitcoin and Ethereum.
Key Features of the Proposed ETF
- Hybrid Investment: Provides exposure to both Bitcoin and Ethereum, simplifying diversified crypto investment for retail investors.
- Initial Allocation: The ETF will initially have a 3:1 allocation in favor of Bitcoin.
- Sponsor and Custodian: Sponsored by Yorkville America Digital, LLC, with custody provided by Foris DAX Trust Company, LLC (affiliated with Crypto.com).
- Listing: Proposed listing on the New York Stock Exchange Arca.
- Creation/Redemption: Will launch with a cash-only creation/redemption model, with plans to transition to in-kind.
This filing follows the recent establishment of a Nevada trust entity by Truth Social earlier this month. The ETF's structure aims to offer a convenient way to gain exposure to the two largest cryptocurrencies. The ratio may be rebalanced at the sponsor's discretion.
Yorkville America Digital, LLC, the ETF sponsor, is also behind other proposed crypto ETFs including a Bitcoin-only ETF for Truth Social, and a staked CRO ETF for Canary Capital. This highlights the firm's growing involvement in the crypto ETF market, particularly through partnerships with TMTG and Crypto.com to launch a series of ‘Made in America’ ETFs.
The SEC's approval of this ETF will depend on their review process. The commission has already approved several dual Bitcoin-Ethereum ETFs from other firms. The approval of this ETF, alongside others currently under review, could signify further development in the crypto ETF space.
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