Trump Media has submitted an application to register and trade shares of its Bitcoin and Ethereum ETF, which is currently under review by the SEC.
ETF Application Details
According to a recent filing, the SEC has accepted the application for creating an exchange-traded fund (ETF) that will include Bitcoin and Ethereum. Truth Social filed its S-1 form with the SEC on June 16.
ETF Structure and Terms
The ETF will be backed by NYSE Arca shares, with 75% allocated to Bitcoin and 25% to Ethereum. The fund's custodian will be Crypto.com, while the sponsor will be asset management firm Yorkville America Digital.
Regulatory Context of ETFs
If approved, Trump Media plans to calculate each portion of its ETF based on CME CF reference rates, relying on aggregated trade data from major cryptocurrency exchanges, but this might change at the discretion of the sponsor.
In the context of increasing competition in the cryptocurrency ETF market, the SEC's response to Trump Media's application will be a significant event.
