The proposed ETF, structured as a Nevada business trust and sponsored by Yorkville, plans to list on NYSE Arca. TMTG, majority-owned by Trump, launched Truth Social in February 2022 as an alternative to mainstream social media platforms after Trump was banned elsewhere. The ETF’s primary assets will be bitcoin (70% target), ether (15%), solana (8%), cronos (5%), and XRP (2%), held by custodian Foris DAX Trust Company, LLC.

SOURCE: SEC filing

Shares will be issued and redeemed only in large blocks called “baskets” of 10,000 or multiples, exclusively by authorized broker-dealers. Initially, creations and redemptions will involve cash exchanges with affiliate liquidity provider Foris DAX, Inc., pending regulatory approval for in-kind transactions.

The trust’s sole recurring fee is the sponsor’s fee, set at an annualized rate of a percentage of net asset value (NAV), accruing daily and payable quarterly. This fee covers most administrative costs; the sponsor will also pay organization and initial offering expenses. Extraordinary expenses would be borne by the trust.

Significant risks disclosed in the regulatory filing include crypto market volatility, regulatory uncertainty, potential security characterization of assets, operational threats like hacking, and tax treatment complexities. The trust is currently prohibited from earning staking rewards and notably will abandon rights from forks or airdrops. The filing insists it qualifies as an “emerging growth company,” reducing some reporting burdens.

Anchorage Digital Bank NA is named cash custodian, while CF Benchmarks Ltd. will provide daily pricing rates. Quarterly rebalancing is planned to maintain target allocations. The SEC must declare the registration effective before sales can commence, marking a significant financial product move for President Trump’s Truth Social ecosystem.

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