The U.S. Securities and Exchange Commission (SEC) has accepted Trump Media's application for an exchange-traded fund (ETF) backed by cryptocurrencies Bitcoin and Ether. This event is attracting attention from both investors and financial market experts.
General Information about the ETF
The ETF proposed by Trump Media aims to provide investors with access to Bitcoin and Ether through shares listed on NYSE Arca. According to the application, 75% of the assets will be allocated to Bitcoin and 25% to Ether.
Conditions and Fund Management
Foris DAX Trust, doing business as Crypto.com, will serve as the custodian for the fund. Yorkville America Digital will act as the fund’s sponsor. The fund will be evaluated daily using the CME CF reference rates for Bitcoin and Ether.
Comparison with Other ETF Applications
Alongside Trump Media's application, the SEC has delayed its decision on Fidelity's proposed Solana-backed ETF. Currently, the SEC is reviewing various applications for cryptocurrency ETFs, which may simplify the approval process for such funds.
The acceptance of Trump Media's application for a Bitcoin and Ethereum ETF reaffirms the growing interest in cryptocurrencies in financial markets. It remains to be seen how the SEC will proceed in the future regarding cryptocurrency ETF regulations.
