Trump Media’s Truth Social filed for an ETF today following its recent campaign of SEC applications. This product primarily focuses on Bitcoin, including several other assets like Solana and Cronos.
Altcoin basket ETFs currently exist in legal limbo, as Grayscale’s application recently got SEC approval and an unorthodox hold on trading. Truth Social’s path to regulated exchanges is currently unclear.
Trump’s Newest Altcoin ETF
Truth Social, a key piece of President Trump’s crypto empire, has prepared ETF launch plans for several months now. In early June, NYSE Arca filed a Form 19b-4 to launch a Bitcoin ETF under the firm’s branding.
Today’s new filing takes more of a basket approach, containing several prominent altcoins in addition to BTC:
According to the SEC filing, Truth Social’s new product would primarily be a Bitcoin ETF. 70% of its allocation would go to this asset, 15% to ETH, 8% to SOL, 5% to Cronos (CRO), and 2% to XRP. The company recently attempted to create a joint BTC/ETH ETF, so this altcoin diversification is steadily increasing.
At first, it seems a little odd that Cronos would occupy such a prominent position in the ETF, more than double XRP’s allocation. Ripple is firmly aligned with the President, and XRP is a much more prominent token than CRO.
However, friction between Trump and Ripple sprouted recently, and Truth Social specifically signed a deal with Crypto.com to promote altcoin ETFs. When considering these two points, the Cronos inclusion seems more legible.
Also, CRO price jumped more than 15% following the news.
Nonetheless, Truth Social may face a few obstacles in bringing another ETF to Trump’s crypto empire. Last week, the SEC theoretically approved an altcoin basket ETF, but put a stay on actual trading immediately afterward.
This product now exists in a legal limbo without regular approval deadlines, and Truth Social could face similar issues.
Meanwhile, the ETF will be structured as a Nevada business trust, a legal setup often used for investment funds. This makes it easier to manage the ETF and can help reduce legal and tax complications compared to other business types.
For now, this filing reflects Trump’s business interest in continued ETF expansion. As long as that trend continues, eventual approval seems likely.
The SEC has signaled its willingness to play ball with new products in several ways, even developing a streamlined approval process for altcoin ETF filings.
The post Trump’s Truth Social Files for a Blue Chip Crypto ETF With 5 Tokens appeared first on BeInCrypto.
