The U.S. Securities and Exchange Commission (SEC) has initiated the review process for the Truth Social Bitcoin and Ethereum ETF application associated with former President Donald Trump's media brand.
Truth Social ETF Application
The ETF application for Bitcoin and Ethereum has been filed by Trump Media & Technology Group and Yorkville America Digital through NYSE Arca. This is a significant event that could impact market behaviors.
ETF Structure and Management
The ETF will be managed by Yorkville America Digital, with custodial services provided by Crypto.com. The ETF proposes an asset allocation of 75% Bitcoin and 25% Ethereum. Gary Gensler, SEC Chair, stated, "The proposed rule change is designed to prevent fraudulent and manipulative acts and practices...".
Market Impact on Cryptocurrencies
Following the filing announcement, an increase in trading volumes for Bitcoin and Ethereum has been observed. While direct financial effects are not evident without SEC approval, the ETF could be a source of capital inflows into the market, reflecting trends seen with prior crypto ETFs. Community discussions emphasize speculative impacts if the ETF is approved.
The review of the Truth Social ETF application raises questions about the influence of Trump's media brand on cryptocurrency markets, as well as potential price increases for Bitcoin and Ethereum should the outcome be favorable.
