The U.S. Securities and Exchange Commission (SEC) has formally acknowledged the receipt of Trump Truth Social's exchange-traded fund (ETF) application, which provides exposure to Bitcoin and Ethereum.
ETF Application Details
The ETF application was submitted on June 16 and marks the company's first foray into digital assets. The proposed fund will hold 75% of its assets in Bitcoin and 25% in Ethereum, utilizing the CME CF Bitcoin Reference Rate and Ether Reference Rate for daily net asset valuation.
ETF Structure and Asset Valuation
Foris DAX Trust Company, operating as Crypto.com, will serve as the custodian of the fund's assets. Yorkville America Digital will sponsor the ETF, overseeing general maintenance and compliance. The ETF will be listed on NYSE Arca pending SEC approval. The structure of the ETF ensures that it holds actual Bitcoin and Ether, allowing investors to benefit from price movements without directly holding digital assets.
Discussion on Fidelity’s Solana ETF Decision Delay
While the SEC initiates its review of Trump Truth Social's ETF, it has delayed its decision on Fidelity's Solana ETF proposal. The regulator has opened a new comment period, indicating active engagement with the public and stakeholders. Bloomberg ETF analyst James Seyffart remarked that this brings hope for future updates.
The application for the ETF by Trump Truth Social, aimed at investment in Bitcoin and Ethereum, marks a significant milestone for the company in the digital asset space. The anticipation surrounding the SEC's decision, set against a backdrop of increasing similar applications, suggests a growing interest in cryptocurrency financial products.
