Truth Social, the social media platform owned by Trump Media & Technology Group (TMTG), has taken a significant step into the cryptocurrency investment space by filing for a hybrid Bitcoin-Ethereum ETF with the U.S. Securities and Exchange Commission (SEC). The proposed fund, filed via Form S-1 on June 16, aims to offer investors exposure to both Bitcoin and Ethereum, marking a departure from its earlier proposal for a Bitcoin-only ETF.
This move underscores Truth Social’s growing ambition to establish itself as a player in the burgeoning world of crypto-backed financial products, aligning with the broader trend of increased regulatory approval for digital asset investments under the Trump administration.
A Hybrid Approach: Bitcoin and Ethereum ETF
The newly proposed ETF, dubbed the Truth Social Bitcoin and Ethereum ETF, would allocate holdings in a 3-to-1 ratio favoring Bitcoin, according to the initial filing. However, this allocation is subject to rebalancing at the discretion of the sponsor, Yorkville America Digital, LLC, which also backs the previously proposed Truth Social Bitcoin ETF and Canary Capital’s proposed staked CRO ETF.
Crypto custody for the ETF will be managed by Foris DAX Trust Company, LLC, an entity affiliated with Crypto.com, ensuring secure handling of digital assets. The ETF shares are expected to be listed on the New York Stock Exchange Arca, though key details such as the fund’s ticker symbol and cash custodian remain undisclosed.
At launch, the ETF will operate on a cash-only creation and redemption model, but the trust has signaled plans to transition to in-kind creations and redemptions in the future. This flexibility could enhance liquidity and operational efficiency for institutional investors.
Building on Earlier Efforts
The hybrid ETF filing follows Truth Social’s earlier submission for a Bitcoin-only ETF, reflecting the company’s strategic pivot toward offering more diversified crypto investment products. By including Ethereum, the second-largest cryptocurrency by market capitalization, Truth Social aims to appeal to a broader audience seeking exposure to multiple leading digital assets.
The establishment of a Nevada trust entity under the same name earlier this month highlights the company’s commitment to advancing its ETF initiatives. These efforts are part of a broader collaboration between TMTG, Yorkville America Digital, and Crypto.com to introduce a series of “Made in America” ETFs, positioning the group as a key player in the U.S. crypto investment landscape.
SEC’s Growing Acceptance of Crypto ETFs
The SEC’s recent approval of spot Bitcoin and Ethereum ETFs has paved the way for innovative hybrid products like Truth Social’s proposed fund. Notable examples include offerings from Hashdex, Franklin Templeton, and Bitwise, all of which have gained traction among institutional and retail investors.
Under the Trump administration, Wall Street’s top securities watchdog is expected to approve additional crypto ETFs tied to assets like XRP, Solana, BNB, and TRON, further expanding investment opportunities in the digital asset space.
Why a Hybrid ETF?
The decision to propose a hybrid ETF reflects growing investor demand for diversified exposure to cryptocurrencies. While Bitcoin remains the dominant force in the crypto market, Ethereum’s prominence in decentralized finance (DeFi) and smart contracts makes it an attractive complement.
By starting with a 3-to-1 Bitcoin-to-Ethereum allocation, the fund offers a conservative approach that prioritizes Bitcoin’s stability while providing meaningful exposure to Ethereum’s growth potential. The ability to rebalance holdings adds a layer of adaptability, allowing the fund to respond to market dynamics and investor preferences.
Challenges and Opportunities
While the proposed ETF represents a bold move for Truth Social, it also comes with challenges. The SEC’s rigorous approval process requires detailed disclosures and assurances regarding investor protection, market integrity, and operational transparency. Additionally, the competitive landscape for crypto ETFs is rapidly evolving, with established financial institutions vying for market share.
Despite these hurdles, the timing appears favorable. The SEC’s recent openness to approving crypto-related products, coupled with the Trump administration’s pro-crypto stance, creates a conducive environment for innovation in the ETF space.
Final Thoughts
Truth Social’s push for a Bitcoin-Ethereum hybrid ETF signals its intent to capitalize on the growing appetite for regulated crypto investment products. By leveraging partnerships with Yorkville America Digital and Crypto.com, the company is positioning itself at the intersection of social media, technology, and finance.
If approved, the ETF could attract significant attention from both retail and institutional investors, further solidifying Truth Social’s role in the evolving digital asset ecosystem. For now, all eyes are on the SEC to see whether this ambitious proposal gains regulatory approval—and how it might influence the future of crypto-backed financial products.
