Trump Linked ETF Seeks Bitcoin Exposure on NYSE Arca

Yorkville America Digital, an asset manager linked to former U.S. President Donald Trump, has filed for a Bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) on behalf of Truth Social, the social media platform operated by Trump Media & Technology Group (TMTG). The filing, submitted on June 3, 2024, seeks approval to list the Truth Social Bitcoin ETF on the NYSE Arca Exchange. This move marks a significant step in TMTG's broader strategy to expand its financial services offerings and capitalize on the growing interest in cryptocurrency investments.

The proposed ETF aims to provide investors with direct exposure to Bitcoin’s price movements without the complexities of owning the cryptocurrency outright. By eliminating operational hurdles associated with direct ownership, the fund is designed to simplify investment in Bitcoin. This initiative reflects TMTG’s broader strategy to expand its financial services offerings and capitalize on the growing interest in cryptocurrency investments.

TMTG had previously applied to trademark several investment products under its Truth.fi brand, including the Truth.Fi Bitcoin Plus ETF, Truth.Fi Made in America ETF, and Truth.Fi US Energy Independence ETF. These initiatives indicate TMTG’s commitment to integrating digital assets into traditional financial services. The filing for the Truth Social Bitcoin ETF follows TMTG’s May announcement regarding plans to raise approximately $3 billion to establish a Bitcoin treasury reserve, positioning the company as a significant player in the cryptocurrency space. This move aligns TMTG with other corporations that have integrated Bitcoin into their financial strategies.

The SEC’s review process for the Truth Social Bitcoin ETF will include a public comment period and multiple evaluation stages, with a final decision expected in the coming months. The growing popularity of spot Bitcoin ETFs indicates the increasing demand for regulated cryptocurrency investment options. Since the SEC approved the first spot Bitcoin ETFs in January 2024, these investment vehicles have attracted substantial inflows. The filing for the Truth Social Bitcoin ETF is a strategic move that aligns with the broader trend of integrating digital assets into traditional financial services.

If approved, the Trump-linked ETF enters a crowded Bitcoin ETF market. It could also add to Trump’s controversial ties to crypto, which critics say are a conflict of interest with his presidential duties and have accused Trump of profiting from the presidency. Trump and his family have ties to an increasingly growing number of crypto projects, which include multiple non-fungible token (NFT) collections, two memecoins, a stablecoin, a crypto mining company and a crypto platform with an associated token.

The ETF filing comes after Trump Media signed an agreement in April with Yorkville America Digital and Crypto.com to launch a series of “Made in America” crypto ETFs. The 19b-4 filing of the Truth Social Bitcoin ETF effectively initiates the SEC’s review process, and it must decide whether to accept, reject or delay the application within 45 days. It can delay its decision multiple times, for a maximum review period of 240 days. Yorkville will also need to file an S-1 registration statement for the ETF, which informs the SEC what the fund plans to offer, how it will operate, how it intends to use any proceeds raised from investors and associated risks.

Trump Media is also looking to integrate a crypto token and wallet into its video streaming site, Truth+, the company’s CEO, Devin Nunes, told shareholders on April 29. “We’re exploring the introduction of a utility token within a Truth digital wallet that can initially be used to pay for Truth+ subscription costs, and later be applied to other products and services in the Truth ecosphere.” Trump Media first signaled plans for a potential crypto payments venture last November when it filed a trademark application with the US Patent and Trademark Office to build a digital asset wallet and allow crypto payments to be processed on Truth.Fi.