Milestone: SEC Acknowledges Truth Social Bitcoin and Ethereum ETF Filing
A significant development has occurred in the world of digital asset investments. The US Securities and Exchange Commission (
SEC
) has officially acknowledged the application from Trump Media & Technology Group for a combined
Bitcoin and Ethereum ETF
. This acknowledgment is a crucial step, as it formally begins the review period during which the
SEC
must decide whether to approve or reject the proposed fund.
What is the Truth Social
Crypto ETF
Proposal?
The filing by
Truth Social
outlines a plan to offer investors exposure to both Bitcoin (BTC) and Ether (ETH) through shares traded on NYSE Arca. According to the application, the fund intends to allocate 75% of its assets to Bitcoin and 25% to Ether. This structure provides diversified exposure across the two largest cryptocurrencies by market capitalization.
Key details from the filing include:
- Assets: Bitcoin (BTC) and Ether (ETH)
- Allocation: 75% Bitcoin, 25% Ether
- Proposed Exchange: NYSE Arca
- Custodian: Foris DAX Trust Company (Crypto.com)
- Sponsor: Yorkville America Digital
How Will the
Bitcoin and Ethereum ETF
Value Be Tracked?
The proposed ETF plans to determine its net asset value (NAV) daily. For the Bitcoin portion, the NAV will be based on the CME CF Bitcoin reference rate, which aggregates trading data from various major crypto exchanges. Similarly, the Ether portion will use the Ether CME CF reference rate for valuation, though the Sponsor retains discretion for alternative methods if needed.
Regarding asset security, the filing states that the crypto custodian, Crypto.com, will hold the fund’s Bitcoin and Ether in separate accounts, distinct from other customer funds. The private keys for these assets will be stored in cold storage, a common practice for enhancing security.
The
SEC
‘s Role in the
Crypto ETF
Landscape
The acceptance of
Truth Social
‘s application is part of a broader trend, with numerous companies filing for various crypto ETFs. The
SEC
is reportedly exploring ways to streamline the approval process for these products, potentially through a simplified listing structure that could automate parts of the review.
Comparisons and Other ETF News
In related news, the
SEC
recently delayed its decision on Fidelity’s proposed spot Solana (SOL) ETF. This delay opens a new window for public comment, indicating the regulator is taking time to evaluate these novel asset classes.
Bloomberg ETF analyst James Seyffart noted the Solana delay was expected and highlighted the ongoing wait for a generalized digital asset ETP framework from the
SEC
. He also suggested that reports of the
SEC
asking Solana ETF issuers to amend applications are positive signs of the regulator’s engagement with the industry, even if not direct approvals.
Positive Signals for Digital Asset ETPs?
Analyst commentary suggests that interactions between the
SEC
and ETF issuers or exchanges should be viewed positively. While these interactions do not guarantee approvals, they indicate active engagement and potential progress towards establishing regulatory clarity for digital asset exchange-traded products.
Summary
The
SEC
‘s acknowledgment of the
Truth Social
Bitcoin and Ethereum ETF
application marks the official start of the regulatory review period. This proposal joins a growing list of
Crypto ETF
filings the
SEC
is currently evaluating. While decisions on specific funds like the proposed
Bitcoin and Ethereum ETF
and others like the delayed Fidelity Solana ETF are pending, the ongoing dialogue and application process signal continued movement in the US towards potentially broader regulated access to digital assets through ETFs.
