Truth Social Parent Files for Diversified Crypto ETF Amid ETF Market Boom

Trump Media & Technology Group (NASDAQ: DJT), the parent company of Truth Social, has filed with the U.S. SEC to launch a new crypto ETF. Named the "Truth Social Crypto Blue Chip ETF," this fund aims to provide investors exposure to five major cryptocurrencies: BTC, ETH, SOL, XRP, and CRO.

The ETF aims to create a diversified portfolio of blockchain ecosystems by allocating its holdings primarily to BTC and ETH, which together account for 85% of the fund, with Bitcoin comprising 70% and Ethereum 15%. The remaining allocations include 8% to SOL, 5% to CRO, and 2% to XRP, reflecting a balanced exposure to both established and emerging cryptocurrencies.

Custody and Management: Ensuring Asset Security

To safeguard the underlying assets, Trump Media has partnered with Crypto.com’s custody arm, Foris DAX Trust Company. This collaboration ensures that the fund's crypto holdings remain secure and compliant with industry standards.

Yorkville America Digital, which supported Trump Media’s earlier ETF efforts, will oversee fund operations. The firm has a track record of filing for both combined Bitcoin-Ether and standalone Bitcoin products.

The SEC filing is the first of two steps required for ETF approval. The second step involves the exchange seeking to list the product, which must submit a 19b-4 form to legally bind the SEC to a review timeline.

The Growing Crypto ETF Market: A Rationale for Expansion

Trump Media's move to launch the Truth Social Crypto Blue Chip ETF comes at a time when the crypto ETF market is experiencing unprecedented growth.

BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF, recently surpassed 700,000 BTC in AUM, equivalent to approximately $76 billion. This milestone was achieved just 18 months after its launch in January 2024, highlighting the immense investor interest in crypto ETFs.

IBIT now accounts for 56% of the total 1.37 million BTC held by all U.S. spot Bitcoin ETFs, a figure that represents nearly 6% of Bitcoin's total supply. The combined assets held by all U.S. spot bitcoin ETFs are now at approximately $147 billion, with cumulative inflows surpassing $50 billion. BlackRock’s dominance in the market underscores the growing appetite for regulated crypto investment products.

By entering this rapidly expanding market, Trump Media aims to capitalize on the increasing institutional and retail interest in cryptocurrency investments. The Truth Social Crypto Blue Chip ETF is positioned to attract investors seeking exposure to a diversified portfolio of established blockchain projects.