The Truth Society of Trump Media has filed an S-1 registration with the Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) to track crypto assets on multiple blue-chip sets.
according to In Tuesday’s filing, the “Truth Society Crypto Blue Chip ETF” will track the performance of a basket of top crypto assets, including Bitcoin (BTC), ether (ethereth), solana (sol), cronos(Crow) and xrp(XRP).
The preliminary prospectus states that the ETF allocates 70% of its holdings to BTC, 15% to ETH, 8% to SOL, 5% to CRO, and 2% to XRP. The custodian will hold the basic assets and any changes to the allocation ratio will require modifications to the agreement and regulatory approval.
The investment vehicle is a structure of the Nevada Business Trust and sponsored by Yorkville American Digital.
After approval, the truth social ETF listed on NYSE ARCA
According to the filing, the trust’s shares will be listed on the New York Stock Exchange (NYSE) ARCA after regulatory approval.
The Crypto ETF application marks Truth Social’s latest high-profile attempt to bring cryptocurrencies to retail and institutional investors using traditional stock markets.
The document states that ETFs will not operate as registered investment companies and will not comply with the Commodity Futures Trading Commission (CFTC) as commodity pool.
Instead, the ETF will issue 10,000 pieces of shares through authorized brokerage dealers and exchange them for shares. This process helps bring the price of the ETF closer to the value of its underlying crypto assets.
Related: Trump Media Group reverses its stance, confirming $2.5B Bitcoin Capital Raising
Truth Social Blue Chip ETF Follows BTC, ETH ETF Application
Truth Social’s move to track ETFs in a basket of top crypto assets is the company’s move to apply for double-point Bitcoin and Ether ETFs.
On June 16, Trute Social Double-point Bitcoin and Ether ETFbacked by assets held by Crypto.com.
The trust attempts to provide exposure to assets and eliminate the complexity of buying cryptocurrencies directly. It will allocate 75% of the funds to Bitcoin and the remaining 25% will allocate funds to Ether.
On Monday, the SEC confirmed the application, officially Begin the audit process Make securities regulators decide on the proposed investment vehicle.
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