- Truth Social files Bitcoin, Ether, and CRO ETFs amid $410M Bitcoin ETF outflows.
- BlackRock IBIT leads withdrawals with $157.56M in major single-day redemptions.
- Proposed ETFs include staking rewards exposure and carry a 0.95% management fee.
Trump Media’s Truth Social has moved to expand its digital asset ambitions, filing with the U.S. Securities and Exchange Commission for two new crypto exchange-traded funds as institutional money flows turn negative across major products. The applications arrive during a week marked by sharp outflows from spot Bitcoin and Ethereum ETFs.
Yet, the filings, submitted by Truth Social Funds, seek approval for the Truth Social Cronos Yield Maximizer ETF and the Truth Social Bitcoin and Ether ETF. Per the report, the proposed products would provide exposure to Cronos (CRO), Bitcoin, and Ether, while also incorporating staking rewards where applicable. The registration statements remain under SEC review and are not yet effective.
Dual ETF Strategy Targets Yield and Price Exposure
The Truth Social Cronos Yield Maximizer ETF aims to track the performance of CRO, the native token of the Cronos ecosystem, plus staking rewards associated with the asset.
The second product, the Truth Social Bitcoin and Ether ETF, is designed to reflect the combined performance of Bitcoin and Ether, alongside Ether staking rewards. Besides, both funds will be advised by Yorkville America Equities, LLC, with an expected management fee of 0.95%.
On the other hand, Truth Social Funds is joining hands with Crypto.com for operational support. Subject to regulatory approval, Crypto.com is expected to provide digital asset custody, liquidity, and staking services. The ETFs would be available for purchase through Crypto.com’s affiliated broker-dealer, Foris Capital US LLC.
Steve Neamtz, president of Yorkville America Equities, said the firm intends to offer investors exposure to both capital appreciation and income opportunities through digital asset products. Kris Marszalek, co-founder and CEO of Crypto.com, confirmed the company’s role in custody, liquidity, and staking support.
Related: Scott Bessent Calls for Clarity Act as Bitcoin Slide Deepens
Filings Land Amid Sharp ETF Outflows
The announcement comes as U.S.-listed spot Bitcoin ETFs recorded a combined net outflow of $410.37 million on February 12. Notably, no Bitcoin ETF reported daily inflows on that date. Data from SoSoValue showed BlackRock’s IBIT registered the largest daily withdrawal at $157.56 million.
Fidelity’s FBTC followed with $104.13 million in outflows, while other Bitcoin ETFs also posted withdrawals. WisdomTree’s BTCW and Hashdex’s DEFI were the only funds reporting no inflows or outflows. Ethereum-linked products, on the other hand, also recorded net outflows totaling approximately $113.10 million on the same day.
Despite negative institutional flows, Bitcoin posted a 24-hour gain of roughly 5%. However, it remained below the $70,000 level, a price point it has yet to break decisively in recent sessions.
Related: South Korea Tightens Crypto Oversight to Track Hidden Assets
Broader Cronos Strategy Underpins Expansion
On a broader scale, Friday’s ETF filing builds on a previously disclosed strategic partnership between Trump Media and Crypto.com. Under that agreement, Trump Media was set to acquire 684.4 million CRO tokens at an approximate price of $0.153 per token.
Moreover, the transaction structure included a 50% stock and 50% cash exchange. It also outlined the creation of a Trump Media Group CRO Strategy aimed at integrating Cronos into the company’s broader digital asset initiatives.
Market reaction to the ETF filing appeared measured. Shares of Trump Media (DJT) rose about 2.5% during Friday’s session, trading near $11.18. The registration statements specify that the securities described in the prospectus may not be sold, nor may offers to buy be accepted, until the SEC review process is completed and the filings become effective.
The timing of the ETF applications places Truth Social’s crypto expansion against a backdrop of declining institutional inflows. While spot demand for Bitcoin showed resilience in price terms, ETF data reflected reduced appetite among large investors.
