Trump Media & Technology Group (TMTG), the parent company of Truth Social, has partnered with Yorkville America Digital to file an S-1 registration statement with the U.S. Securities and Exchange Commission for the proposed Truth Social Crypto Blue Chip ETF. The product is structured as a Nevada business trust and is intended to list on NYSE Arca, subject to regulatory clearance.
Bitcoin-Dominant Allocation Plan
The filing outlines a crypto basket centered on large-cap digital assets. The target allocation is 70% bitcoin, 15% ether, 8% solana, 5% cronos, and 2% XRP. Digital assets would be held by Foris DAX Trust Company, LLC, while Anchorage Digital Bank NA is named as cash custodian. Daily pricing rates would be supplied by CF Benchmarks Ltd., and the portfolio is expected to be rebalanced quarterly to maintain target weights.
Creation, Redemption, and Fee Design
Shares would be created and redeemed only in large blocks, or baskets of 10,000 shares or multiples thereof, and only through authorized broker-dealers. At launch, creations and redemptions are expected to be handled in cash with support from affiliated liquidity provider Foris DAX, Inc.. In-kind transactions may be introduced later if regulators approve that structure.
On fees, the trust lists a sponsor fee as its primary recurring charge. That fee would be calculated as an annualized percentage of net asset value, accrued daily, and paid quarterly. It is designed to cover most administrative expenses, while the sponsor would absorb organization and initial offering costs. Any extraordinary expenses, however, would be borne by the trust.
Filing Highlights Key Risks
The registration statement also flags several material risks, including crypto market volatility, regulatory uncertainty, the possibility that some assets could be treated as securities, cybersecurity threats such as hacking, and complicated tax treatment. The trust would not be permitted to earn staking rewards at this stage, and it would also give up rights associated with forks and airdrops. The filing further states that the issuer expects to qualify as an emerging growth company, which can reduce certain reporting obligations.
The ETF cannot begin sales unless the SEC declares the registration effective. If approved, the product would mark a notable step in expanding the Truth Social ecosystem into listed crypto investment products and would add another politically connected name to the growing U.S. digital-asset ETF market.