SEC Accepts Trump Media’s Dual Crypto ETF Application
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Trump Media & Technology Group’s application for a new Bitcoin and Ethereum exchange-traded fund (ETF). This acceptance marks the formal start of the clock for the regulatory agency to either approve or reject the proposed fund. The move signifies a notable development in the ongoing integration of digital assets into traditional financial markets, as a high-profile entity associated with President Donald Trump seeks to offer direct crypto exposure to investors through a regulated vehicle.
Bitcoin and Ethereum ETF: Proposed Holdings and Operational Setup Revealed
The proposed ETF aims to offer investors exposure to both Bitcoin (BTCUSD) and Ether (ETHUSD) through shares listed on NYSE Arca, which will be backed directly by these crypto assets. According to the filing, the fund will allocate its holdings with a 75% weighting to Bitcoin and 25% to Ether, providing a diversified crypto exposure. Foris DAX Trust Company, operating as Crypto.com, has been designated to act as the custodian for the fund’s digital assets, while asset management firm Yorkville America Digital will serve as the fund’s official sponsor, outlining a clear operational structure for the proposed ETF.
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Amidst a Wave of Crypto ETF Applications
Trump Media’s ETF filing arrives amidst a burgeoning flood of other cryptocurrency ETF applications currently awaiting SEC review. This surge in interest from various issuers reflects a growing demand for regulated investment products that simplify access to digital assets for mainstream investors. In response to this trend, the SEC is reportedly exploring the implementation of a simplified listing structure for crypto ETFs, a move that could significantly automate and streamline a substantial portion of the approval process, potentially accelerating the launch of more such funds in the future.
Valuation Mechanism for Truth Social Crypto ETF
The proposed Truth Social crypto ETF outlines a clear methodology for valuing its net asset value (NAV) on a daily basis. The Bitcoin portion of the fund’s value will be calculated using the CME CF Bitcoin reference rate, which aggregates trade data from multiple major crypto exchanges to provide a robust benchmark. Similarly, the Ether holdings within the fund will utilize the Ether CME CF reference rate for valuation, “unless otherwise determined by the Sponsor at its sole discretion.” Furthermore, the crypto custodian is mandated to hold the fund’s Bitcoin and Ether in separate accounts from its other customer assets and to secure the private keys in cold storage, enhancing asset security.
Beyond Bitcoin & Ethereum: Solana ETF’s Regulatory Roadblocks
While Trump Media’s ETF application progresses, other crypto ETF proposals are experiencing regulatory hurdles. The SEC has notably delayed making a decision on Fidelity’s proposed spot Solana (SOL) ETF, opting to open a new public comment window. Responses to this request are required within 21 days, with rebuttals due within 35 days, indicating a thorough review process. Cboe BZX Exchange, a U.S. securities exchange, initially sought permission to list a proposed Fidelity ETF holding Solana in a filing submitted on March 25, and Bloomberg ETF analyst James Seyffart commented on X that the delay was “as expected.”
Positive Signals for Broader Crypto ETP Framework
Despite the delay for the Solana ETF, Bloomberg ETF analyst James Seyffart noted in another X post that reports of the SEC asking issuers of SOL spot ETFs to amend and refile applications by the end of the month are a positive sign of “SEC movement” on potential new crypto exchange-traded products (ETPs). Seyffart clarified that this would involve “more amendments and more back and forth, NOT approvals,” but emphasized that “Pretty much any sort of interactions between SEC and issuers/exchanges should be viewed positively.” This suggests that the SEC is actively engaging with the industry to develop a generalized digital asset ETP framework, which could pave the way for a wider range of regulated crypto investment products.
Bitcoin, Ethereum, and the Accelerating Mainstream Adoption of Crypto through ETFs
The SEC’s acknowledgment of Trump Media’s Bitcoin and Ethereum ETF application, combined with ongoing discussions about a broader crypto ETP framework, carries significant implications for the mainstream adoption of digital assets. The potential listing of such a high-profile fund on NYSE Arca could further legitimize cryptocurrency as an asset class for traditional investors. These developments signal a growing acceptance and integration of crypto into regulated financial markets, potentially lowering barriers to entry and increasing liquidity, ultimately accelerating the broader acceptance of Bitcoin and Ethereum within conventional investment portfolios.
