Truth Social files two crypto ETFs as SEC starts review

Trump Media & Technology Group (TMTG), the company behind the Truth Social platform, has officially filed for a cryptocurrency exchange-traded fund (ETF).

The United States Securities and Exchange Commission (SEC) acknowledged the filing on 7 July 2025. This starts the official review process, but approval is not guaranteed.

The ETF is called the Truth Social Bitcoin and Ethereum ETF, B.T. and was submitted to the SEC on 16 June 2025. The goal of the fund is to give investors exposure to Bitcoin ($BTC) and Ethereum ($ETH) in a regulated way. It is being launched with the help of Yorkville America Digital, LLC, a part of Yorkville America, LLC.

This ETF will hold 75% of its portfolio in Bitcoin and 25% in Ethereum. Every quarter, the fund will rebalance its holdings to maintain this 3:1 ratio. That means even if one asset outperforms the other, the fund will adjust to stay on track with the original balance.

To make it more secure, the digital assets will be held in cold storage by Foris DAX Trust Company, LLC, which operates as Crypto.com. Cold storage means the assets are not connected to the internet, reducing the risk of hacks.

The fund’s net asset value (NAV) will be calculated daily at 4:00 p.m. ET, using the CME CF Bitcoin Reference Rate and the CME CF Ether Reference Rate. These are widely used pricing benchmarks for Bitcoin and Ethereum.

If approved, the ETF will trade on NYSE Arca, a popular exchange for ETFs. Shares will be issued in groups of 10,000 units, called “Baskets”. These will be handled by authorised participants, such as large institutional traders. 

The idea is to make crypto investing more available to everyday investors, without the need to manage private keys or set up digital wallets.

On 25 June 2025, NYSE Arca also submitted a 19b-4 rule change proposal. This is part of the process required to list the ETF on the exchange. 

The SEC will review the filing under Section 6(b)(5) of the Securities Exchange Act, which checks if the proposal is safe for investors and if it prevents fraud or manipulation.

To help reduce market manipulation risks, the ETF has a Comprehensive Surveillance Sharing Agreement (CSSA) with the Chicago Mercantile Exchange (CME). This agreement allows the exchange to share trading data with regulators if needed.

Although there are no direct objections in the SEC’s documents, the political connection to former President Donald Trump has raised eyebrows. Some analysts believe this link could lead to extra scrutiny during the review.

The SEC now has between 45 and 240 days to make a decision. It will also open a 21-day public comment period once the proposal is published in the Federal Register. People can submit their opinions through the SEC website.

Second ETF with five cryptocurrencies

Alongside the Bitcoin and Ethereum ETF, Truth Social has submitted another proposal. This second ETF is called the Truth Social Crypto Blue Chip ETF and includes five different cryptocurrencies. These are: Bitcoin (70%), Ethereum (15%), Solana (8%), Cronos (5%), XRP (2%)

The fund will also be listed on NYSE Arca and rebalanced every quarter to maintain the target weights. The idea is to give investors access to a wider mix of digital assets, not just Bitcoin and Ethereum.

This ETF is also sponsored by Yorkville America Digital, LLC, and many of the same service providers are involved. 

For example, Foris DAX Inc., affiliated with Crypto.com, will handle asset custody, provide liquidity, and manage rebalancing.

In its Form S-1 filing, the fund is described as a passive investment vehicle. It’s designed to track the prices of the five assets mentioned above, before deducting any fees or expenses.

Like the other ETF, shares will be created and redeemed in groups of 10,000 units. At the start, the fund will only accept cash-based transactions for these operations. 

However, in-kind transactions (swapping actual crypto for shares) may be added later if the SEC gives approval. Price data will come from CF Benchmarks, which uses CME indices to track asset values.

This multi-asset ETF is seen as part of a bigger plan by Trump Media and Yorkville America to grow the Truth Social and “America First” brands in the crypto space. 

They have already filed for other products, including a Bitcoin-only ETF and the Bitcoin & Ethereum hybrid ETF.

While the filings have caught attention, Yorkville America Digital and Crypto.com have not issued public statements. 

No major reactions have been posted on social media either. This suggests that the market is still watching and waiting before reacting strongly.

Crypto ETFs gain popularity as Bitcoin demand stays high

These new filings come at a time when crypto ETFs are gaining momentum in the US. In early 2025, the SEC approved several spot Bitcoin and Ethereum ETFs, which led to increased interest from both retail and institutional investors.

A fund that combines Bitcoin and Ethereum exposure in one package could attract even more attention. It gives investors the ability to spread their risk between the two most well-known cryptocurrencies.

Truth Social’s involvement may also bring in new users who are already active on the platform. While there’s not much data on how Truth Social users behave as investors, the brand recognition could play a role.

Meanwhile, TMTG appears to be making a strong bet on crypto. Reports say the company has bought $2.3 billion worth of Bitcoin for its treasury. It has also raised $2.5 billion in fresh capital to support its broader crypto plans.

Market trends seem to support this strategy. According to CoinMarketCap, Bitcoin is currently priced at $108,856.52 and has a market cap of $2.16 trillion. 

Over the past 90 days, it has gone up by 41.75%. Ethereum has shown more price swings but still holds strong value.

A recent report by the Coincu research team said, “The introduction of a multi-asset ETF could potentially spur a new wave of institutional interest, bringing more validation and stability to the cryptocurrency market”.

There is also ongoing data showing strong demand for Bitcoin ETFs. According to blockchain analysis firm Santiment, from 6 June through 7 July, there was only one day of outflows across US Bitcoin ETFs. On 7 July alone, net inflows reached $216.5 million.

The biggest contributor was BlackRock’s iShares Bitcoin Trust (IBIT) with $164.6 million in new money. Fidelity’s FBTC added $66 million. However, ARKB and Grayscale’s GBTC experienced small outflows of around $10 million each.

Earlier in the month, on 1 July, there was a single-day net outflow of $342 million, but that followed 15 straight days of inflows that brought in nearly $4.7 billion. 

Overall, total net inflows for spot Bitcoin ETFs have now reached about $49 billion, with assets under management (AUM) rising above $131 billion.

Experts believe this strong demand could push Bitcoin prices even higher. The head of research at 10x Research, Markus Thielen, has forecasted that Bitcoin might hit $116,000 soon. 

He said, “These flows are increasingly outpacing price action, signalling institutional demand driven more by macro concerns than short-term momentum”.

Meanwhile, Bitwise CIO, Matt Hougan, and head of research, Ryan Rasmussen, have held on to their $200,000 price target for Bitcoin by the end of 2025. 

They released a report on 30 June noting that Bitcoin hit an all-time high of $112,000 in May, largely due to strong ETF inflows.

Their report also pointed to increased activity from Bitcoin-focused treasury firms and discussions about creating a US strategic Bitcoin reserve as signs of growing institutional interest.

Both of Truth Social’s ETF filings are now in the hands of the SEC. Whether they get approved or not will depend on regulatory review, market readiness, and broader investor sentiment. But one thing is clear – Truth Social and Trump Media are taking a bold step into the crypto world.