- Trump Media & Technology Group has filed to launch a new exchange-traded fund that would directly invest in both Bitcoin and Ethereum.
- If approved, this dual-cryptocurrency ETF aims to offer investors a direct, regulated path into major digital assets, potentially leveraging its brand to attract a unique audience.
Trump Media & Technology Group, the company operating the Truth Social platform, announced on Monday its intention to launch an exchange-traded fund (ETF) that would directly invest in both Bitcoin and Ethereum.
This marks the second cryptocurrency ETF filing from the social media company in less than two weeks, signalling an aggressive push into the digital asset space. Should it gain approval, the Truth Social Bitcoin & Ethereum ETF would enter a market already dominated by established players, such as BlackRock, whose iShares Bitcoin ETF holds tens of billions of dollars in assets.
Truth Social’s Play in the Crypto ETF Market
This new filing specifies that the ETF will directly hold both Bitcoin and Ether, with an initial allocation strategy of 75% Bitcoin and 25% Ether. The shares of this fund are designed to track the performance of these two leading cryptocurrencies and, if approved, are expected to trade on NYSE Arca.
To ensure the security and efficiency of the fund, Crypto.com has been chosen as the exclusive custodian, prime execution agent, staking, and liquidity provider. Yorkville America Digital, LLC, is listed as the sponsor of this ambitious fund.
According to Trump Media’s announcement, the launch of the Truth Social Bitcoin and Ethereum ETF is contingent upon the effectiveness of its Registration Statement and the subsequent approval of a Form 19b-4 filing with the SEC.
The fund itself is structured as a Nevada business trust, meaning its shares will be issued and redeemed in blocks, typically 10,000, by authorised participants, primarily using cash for these transactions. The company has also noted that while a registration statement has been filed, it’s not yet effective, and shares cannot be sold until it is.
A notable aspect of this ETF is its exemption from the Investment Company Act of 1940, which usually governs traditional mutual funds and ETFs with strict rules for investor protection and disclosures. Because this ETF directly holds Bitcoin and Ether rather than traditional securities, it qualifies as a grantor trust.
This specific structure exempts it from many of the compliance requirements of the 1940 Act, simplifying its regulatory pathway in some respects.
This ETF filing indicates Trump Media’s strategic ambition to establish a strong presence in the digital asset sector, extending beyond its core social media and streaming services. With the development of its financial services arm, TruthFi, the company is actively positioning itself to compete in the rapidly expanding digital asset landscape.
If successful, the Truth Social ETF would provide investors with a straightforward, regulated avenue to gain exposure to both Bitcoin and Ether through a single investment vehicle.
However, entering this market will present challenges. Bryan Armour, an ETF analyst at Morningstar, commented that
t will be a challenge for any new entrant in this market. He added that The only way to stand out will be through fees or brand.
The current filing for the Bitcoin and Ethereum ETF does not yet disclose its proposed fees, nor has Trump Media revealed fees for its earlier Bitcoin-only ETF filing. For context, similar crypto ETFs in the market currently offer competitive fees around 0.12%.
Trump Media representatives have not yet responded to requests for comment regarding these details. Sui Chung, CEO and chairman of CF Benchmarks, suggested that what truly differentiates this venture might be its marketing approach.
Given Truth Social’s involvement, it may very well be that these are marketed directly to individual investors
Chung noted.
He speculated that “this ends up getting attention from those investors in the same way that people who love their iPhones buy Apple stock,” implying that brand loyalty could play a significant role in attracting investors to this new crypto ETF.