XRP Gains Exposure in Truth Social’s New Crypto ETF Plan

XRP is securing stronger recognition in the investment landscape as Truth Social, the media firm linked to former U.S. President Donald Trump, takes a major step into digital assets. The company has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a new spot cryptocurrency exchange-traded fund (ETF), signaling growing mainstream adoption of crypto assets.

This proposed ETF, named the Truth Social Crypto Blue Chip ETF, plans to provide direct exposure to leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cronos (CRO). This development provides a notable boost for XRP, cementing its relevance within diversified crypto investment vehicles.

According to the SEC filing submitted on July 8, the ETF will adopt a passive investment approach, mirroring the performance of included cryptocurrencies without engaging in leveraged or speculative strategies. The asset allocation will be distributed as follows: 70% Bitcoin, 15% Ethereum, 8% Solana, 5% Cronos, and 2% XRP.

While the filing’s announcement had limited impact on the valuations of more established assets like BTC, ETH, SOL, and XRP, it triggered a significant surge in CRO’s value, pushing it up by over 12% to a monthly peak of $0.09202. XRP’s inclusion, although set at a smaller portion, solidifies its standing among institutional-grade crypto offerings.

The ETF aims to be listed and available for trading on the NYSE Arca exchange, although no official ticker symbol has been assigned yet. Notably, the ETF will incorporate staking for eligible tokens such as Ethereum, Solana, and Cronos, enabling the fund to earn staking rewards and enhance returns for investors.

Custodial responsibilities will fall under the domain of Crypto.com’s institutional branch, Foris DAX Trust Company, which will manage and secure the underlying digital assets. Meanwhile, the ETF will be sponsored and managed by Yorkville America Digital Asset Management. Additionally, CF Benchmarks Ltd. is set to provide official pricing indexes for the assets involved, ensuring transparent and accurate USD-based valuations.

The fund may also offer in-kind transaction capabilities, allowing Authorized Participants to directly exchange cryptocurrency for ETF shares. However, final implementation of this feature is pending regulatory approval from NYSE Arca, the timeline of which remains uncertain.

This ETF proposal follows an earlier filing from Truth Social involving a simpler crypto asset mix, which featured a 75% allocation to Bitcoin and 25% to Ethereum. Both applications highlight the company’s dedication to expanding institutional crypto exposure options, and XRP’s presence in the more advanced filing underscores its relevance within diversified blockchain investments.

The timing of these applications aligns with ongoing discussions at the SEC regarding a more streamlined approval framework for crypto ETFs. Experts indicate that, while progress is being made, the finalization of such frameworks may not arrive until the early fall. Nate Geraci, president of NovaDiusWealth, shared that some asset managers are holding off expecting regulatory clarity before new spot ETF approvals are granted.

Related: XRP Price: $12M Max Pain for Bears

For XRP and the broader Ripple ecosystem, its inclusion in diversified investment products like the Truth Social Crypto Blue Chip ETF enhances credibility among institutional investors. As more crypto ETFs surface, XRP’s integration into portfolios with heavyweights like Bitcoin and Ethereum emphasizes its importance in the evolving digital finance space.