The U.S. Securities and Exchange Commission (SEC) has officially started reviewing Trump Media’s request to launch a Bitcoin and Ethereum exchange-traded fund (ETF). This means the SEC now has a limited time to decide whether to approve or reject it.
The ETF would let people invest in Bitcoin and Ethereum by buying shares on the NYSE Arca stock exchange. The fund would be made up of 75% Bitcoin and 25% Ethereum, if it approves the request.
Crypto.com will secure the cryptocurrency as the custodian, and Yorkville America Digital will manage the fund as its sponsor.
This filing comes at a time when many other companies are also applying to launch crypto ETFs. Reports say the SEC is looking into a simpler way to list these crypto ETFs, which would make the approval process faster and more automatic.
What is Truth Social trying to achieve?
Truth Social intends to have its ETF’s value checked daily. The Bitcoin component will be settled with the CME CF Bitcoin reference rate, a price based on trading on some big crypto exchanges.
The Ether in the trust will be valued based on the CME CF Ether reference rate, unless the fund’s sponsor elects a different method.
Cryptocurrency custodian BitGo will hold the fund’s Bitcoin and Ether in a cold storage and keep the assets separate from BitGo’s other customers. Their private keys will be stored in cold storage offline, which makes them more secure.
The SEC, meanwhile, has opted to hold off on a final decision regarding Fidelity’s proposal for a spot Solana ETF. They are now inviting the public to share their opinions for 21 days, and after that, anyone else who wants to respond to those comments has 35 days.
Seyffart said in a post on X on Monday that the SEC asking companies to update and resubmit their Solana ETF applications by the end of the month is another good sign. It shows the SEC is actively working on allowing more crypto ETFs in the future.
