SEC Acknowledges Truth Social's Multi-Asset Crypto ETF Filing

The U.S. Securities and Exchange Commission (SEC) has formally acknowledged a filing from Trump Media & Technology Group (TMTG), the parent company of Truth Social, for a “Blue Chip Crypto” exchange-traded fund (ETF). This acknowledgment, reported on July 8, initiates the regulatory review process for the proposed investment vehicle, which aims to provide exposure to a basket of leading cryptocurrencies. The development was highlighted by "The Wolf Of All Streets" on social media, stating, "> U.S. SEC ACKNOWLEDGES TRUTH SOCIAL $BTC & $ETH ETF."

The proposed "Truth Social Crypto Blue Chip ETF" seeks to hold a diverse portfolio of digital assets. According to the S-1 registration statement, the fund intends to allocate approximately 70% to Bitcoin (BTC), 15% to Ethereum (ETH), 8% to Solana (SOL), 5% to Cronos (CRO), and 2% to XRP. This broad exposure distinguishes it from earlier filings by Trump Media, which included a standalone Bitcoin ETF and a dual Bitcoin and Ethereum combination ETF, the latter proposing a 75% Bitcoin and 25% Ethereum allocation.

Yorkville America Digital is listed as the sponsor for the ETF, with Foris DAX Trust Company, operating as Crypto.com, designated as the custodian for the digital assets. The assets are expected to be held in cold storage, ensuring enhanced security. The SEC's acknowledgment formally starts the clock for the agency to approve or reject the fund, a process that can extend up to 240 days, and requires a separate 19b-4 filing for exchange approval.

This move by Truth Social aligns with Trump Media’s broader digital asset strategy, which includes a previously announced plan to establish a corporate Bitcoin treasury. In May, the company raised $2.44 billion through a private placement, with proceeds earmarked for Bitcoin acquisition and general operations. TMTG President and CEO Devin Nunes described Bitcoin as "an apex instrument of financial freedom," indicating its strategic importance to the company's asset base.

The filing comes amid a surge in interest for cryptocurrency ETFs and reflects the evolving stance of the SEC toward such products. While the SEC has approved spot Bitcoin ETFs, it continues to navigate the complexities of other crypto-backed funds. The entry of a politically-linked entity like Truth Social into the crypto ETF space adds a unique dimension to the regulatory landscape, drawing scrutiny regarding transparency and potential conflicts of interest.