Truth Social Files for Bitcoin-Ethereum ETF with SEC

NEW YORK, June 16 (Reuters) – Trump Media & Technology Group has submitted a filing to the U.S. Securities and Exchange Commission to launch a dual exchange-traded fund (ETF) that will invest in both bitcoin and ethereum. This filing comes less than two weeks after the company proposed a separate ETF focused solely on bitcoin.

The proposed Truth Social Bitcoin and Ethereum ETF would allocate its holdings with 75% in bitcoin and 25% in ethereum, according to the registration submitted Monday. The fund is sponsored by Yorkville America Digital, which will also handle the crypto custody through Foris DAX Trust Company, an affiliate of Crypto.com.

Industry expert Bryan Armour, an ETF analyst at Morningstar, remarked on the high competition in the ETF market, especially with major players like BlackRock already dominating the field. He stated, “It will be a challenge for any new entrant in this market. The only way to stand out will be through fees or brand.”

While specific fee structures remain undisclosed, current similar ETFs typically charge fees around 0.12%. The latest filing specifies an initial allocation of three bitcoins for every ethereum token held. This allocation can be rebalanced at the sponsor’s discretion, which some analysts like Sui Chung, CEO of CF Benchmarks, believe may cater to individual investors who are also fans of the Truth Social platform.

The shares for this new ETF would be listed on the New York Stock Exchange Arca, but important details such as the fund’s ticker symbol and cash custodian are still being finalized. With the SEC now cautiously approving spot bitcoin and ethereum ETFs, the outcome of Truth Social’s proposal remains uncertain but could contribute to the growing acceptance of digital assets in regulated investment spaces.