SEC Recognizes Truth Social Bitcoin ETF Filing for Review

The U.S. Securities and Exchange Commission (SEC) has officially recognized the filing submitted by Truth Social, the social media platform founded by former U.S. President Donald Trump, to list its own Bitcoin ETF under NYSE. This acknowledgment signifies that the application will now undergo a review process, but it does not imply approval or permission to commence trading.
The proposed ETF, as detailed in the filing, will directly invest in Bitcoin and closely track its price. The ETF will issue shares that represent partial ownership of the Bitcoin held by the Trust. These shares will be listed under NYSE Arca Rule 8.201-E, which governs trust shares based on commodities. The holdings will be securely managed by Foris DAX Trust Company, LLC, also known as Crypto.com, which will act as the custodian for the fund. All Bitcoin will be stored offline in cold storage to ensure maximum security.
The fund’s net asset value (NAV) will be calculated daily by the Trust Administrator based on the CF Benchmarks Index. This index provides a daily USD price of Bitcoin derived from the trading activity of several crypto exchanges. This structure allows investors to gain exposure to Bitcoin without the complexities of purchasing or holding the cryptocurrency themselves. However, the SEC must first approve the S-1 registration and the 19b-4 proposed rule change before the ETF can commence trading.
Initially, Trump Media’s original S-1 filing mentioned that the fund would invest in both Bitcoin and Ethereum. However, the SEC notice only refers to the “Truth Social Bitcoin ETF” and does not include Ethereum at this stage. This indicates that the agency is currently reviewing only the Bitcoin portion of the application. The ETF’s dual-asset approach, which was initially proposed to allocate 75% of its assets to Bitcoin and 25% to Ethereum, has been temporarily set aside as the SEC focuses on the Bitcoin component.
This development follows Trump Media and Technology Group's disclosure of plans for a substantial $2.3 billion Bitcoin acquisition, which the SEC has officially approved. Additionally, President Trump’s newly released financial disclosure reveals significant earnings from his crypto venture, World Liberty Financial. The platform, introduced last summer, has brought in over $57 million from token sales, with Trump holding nearly 16 billion governance tokens. The SEC's acknowledgment of the filing is a crucial step in the regulatory process, although it does not guarantee approval. If approved, the ETF would enter a competitive market already dominated by established players, highlighting the growing interest and investment in cryptocurrencies and Truth Social's strategic expansion into new financial products.

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