The U.S. Securities and Exchange Commission (SEC) has announced the delay in the decision regarding the Bitcoin ETF application from Truth Social, owned by Trump Media & Technology Group.
Truth Social ETF Application
In a statement released on Monday, the SEC confirmed it has postponed a decision on Truth Social's request to register a Bitcoin ETF until September 18. This is necessary for a more thorough evaluation of the proposed rules and related issues.
ETF Structure and Goals
According to its registration, the ETF is named 'Truth Social Crypto Blue Chip ETF' and will track the performance of five major tokens: Bitcoin, Ether, Solana, Cronos, and XRP. The portfolio will allocate 70% to Bitcoin, 15% to Ether, 8% to Solana, 5% to Cronos, and 2% to XRP. The ETF will be structured as a Nevada business trust, managed in partnership with Yorkville America Digital.
Market Situation with Other ETFs
This ETF is the second proposal from Trump Media in recent weeks. Previously, the company submitted an application for a dual Bitcoin and Ether ETF with a 75% to 25% distribution. The SEC also delayed its decision on Grayscale's application to convert its Solana Trust into an ETF, while decisions on other traditional cryptocurrency ETFs are still pending.
The wait for the SEC's decision on the Truth Social application and other ETFs highlights the challenging conditions for the acceptance of new financial instruments in the cryptocurrency market.
