Yorkville America has announced the launch of an artificial intelligence ETF called the MANGOS Plus Index ETF (ticker FRUT).
Yorkville previously acted as an investment advisor for Truth Social’s defunct digital-asset funds. The move is now being regarded as a signal of a departure from crypto into AI stocks.
Started with Bitcoin baskets, now a single-ticket AI fund
The new fund will adopt the ticker FRUT and is designed around the hardware aspects of artificial intelligence, Yorkville America announced. The company believes FRUT will serve as a “single-ticket expression” of the platform and hardware aspects of artificial intelligence. This simply means that investors get access to AI infrastructure with one product, as opposed to mixing up different chipmakers and platform names.
The launch becomes more relevant when you realize who is backing it. Yorkville America was an advisor to Truth Social Funds, the ETF branch of Trump Media & Technology Group. This marks a clear shift in emphasis for a firm that has spent the last eighteen months developing crypto products.
The crypto ETFs that arrived first
Prior to its recent pivot into AI, Yorkville America served as an advisor to a bunch of digital-asset funds. In February of this year, TMTG filed with the SEC for the Truth Social Bitcoin and Ether ETF. The joint product weighted ~60% to Bitcoin and 40% to Ethereum.
A companion filing covered the Truth Social Cronos Yield Maximizer ETF, centered on Cronos (CRO), the token linked to Crypto.com.
Both funds were built to disburse staking rewards to shareholders. Crypto.com was billed to serve as a custodian while offering liquidity and staking services. Yorkville America Equities advised on both funds.
Why TMTG withdrew the crypto filings
The digital asset play gained little traction. In May of this year, Truth Social withdrew its Form S-1 registration statements for the Truth Social Bitcoin ETF and the Truth Social Bitcoin & Ethereum ETF.
“The Company has determined to withdraw the Registration Statement and not to pursue the public offering at this time,” the filing said.
Yorkville America framed the withdrawal as repositioning rather than a defeat. The President of Yorkville America, Steve Neamtz, stated that the ’40 Act structure “allows us to bring more differentiated investment strategies to our investors that are not possible under the ’33 Act framework.”
The ’33 Act, or Securities Act of 1933, dictates the manner in which securities are first offered to the public for sale. While the ’40 Act, the Investment Company Act of 1940, dictates the organization and structure of investment companies.
Not everyone sees it the same way, though, as James Seyffart, a Bloomberg analyst, believes the decision is related to the saturated nature of the market for spot Bitcoin ETFs. He referenced Morgan Stanley’s MSBT, which arrived at a 14 basis-point fee.
The SEC initially approved US spot Bitcoin ETFs in January 2024, and those funds have gone on to accrue inflows to the tune of $57.7 billion.