Trump’s Truth Social Seeks SEC Approval for Two New Crypto ETFs

Highlights:

• Trump’s Truth Social plans to launch two new digital asset ETFs.
• The ETFs include Bitcoin, Ethereum, and Cronos tokens with staking rewards.
• Crypto.com will provide custody and staking services for the new ETFs.

Truth Social, linked to Trump Media and Technology Group, has filed for two new cryptocurrency-focused exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC). The two ETFs, the Truth Social Bitcoin and Ether ETF and the Truth Social Cronos Yield Maximizer ETF, aim to provide investors with exposure to leading cryptocurrencies, as per the press release.

Truth Social Sets Its Sights on Digital Assets

The Truth Social Bitcoin and Ether ETF will track the performance of Bitcoin and Ethereum, two of the largest digital assets. This fund will allocate about 60% in Bitcoin and 40% in Ethereum. Besides price exposure, it will provide staking rewards from Ethereum. Staking involves holding tokens to support the network, and those rewards will be transferred to the ETF holders.

On the other hand, the Truth Social Cronos Yield Maximizer ETF targets Cronos, the native token of the Crypto.com blockchain. This fund will track the price performance of Cronos as well as staking rewards on both native and liquid staking options. Through providing exposure to Cronos, Truth Social aims to tap into the rising interest in Crypto.com’s ecosystem.

Crypto.com and Yorkville America Equities Lead the Charge

Trump’s Truth Social has partnered with Crypto.com to offer essential services like digital asset custody, liquidity, and staking services for the ETFs. Crypto.com’s infrastructure is essential to the introduction of these funds. The funds will also have Yorkville America Equities, which specializes in America-first investment strategies, as its adviser. Moreover, they are expected to carry a management fee of 0.95%.

The co-founder and CEO of Crypto.com, Kris Marszalek, expressed enthusiasm about the collaboration. He said, “We are pleased to be selected to provide digital asset custody, liquidity, and staking services for these new Truth Social Funds ETFs.”

In addition, the participation of Crypto.com adds the venture credibility and technical expertise. The purchase and trading of the ETFs will be done by Foris Capital US LLC, the broker-dealer of Crypto.com, as soon as the regulatory approval is granted.

Steve Neamtz, the president of Yorkville America Equities, also weighed in, saying,

Expanding Trump’s Truth Social Investment Strategy

This foray into cryptocurrency is a part of the broader Trump Media and Technology Group investment strategy. These new ETFs will align with the “America First” theme that has characterized the firm’s products. This includes a red-state-focused real estate ETF and an American Icons ETF. The ETFs aim to offer both capital growth and income opportunities, attracting investors seeking diversified investment options.

Meanwhile, the push of Truth Social into the crypto ETF market is not new. The company already filed for a Bitcoin ETF and Crypto Blue Chip ETF, which would comprise a portfolio of popular cryptocurrencies, including BTC, ETH, SOL, XRP, and CRO. Those filings are still pending launch, but Bloomberg ETF analyst Eric Balchunas noted that they will be available soon.