The SEC has acknowledged Truth Social's application for a dual Bitcoin and Ethereum ETF.
The proposed Truth Social ETF offers 75% Bitcoin and 25% Ethereum exposure.
Fidelity's spot Solana ETF has faced another SEC delay, though analysts view this as a positive sign.
The SEC is showing more and more willingness to engage with crypto ETP issuers so far.
The general crypto ETF market is seeing an influx of applications, which is pressuring the SEC for another approval.
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Trump Media & Technology Group’s application for a Bitcoin and Ethereum ETF.
For some context, the Truth Social brand is seeking approval to launch a dual crypto ETF.
This ETF would offer investors exposure to both Bitcoin and Ether through a single investment vehicle, and it places Trump Media alongside several other companies attempting to bring more crypto products into the mainstream financial system.
Here’s why this application could be close to being approved.
The proposed ETF is structured to offer 75% exposure to Bitcoin and 25% to Ethereum, with shares to be traded on the NYSE Arca exchange.
The main aim of this move is to simplify access to the two largest cryptocurrencies for both institutional and retail investors.
According to the filing, Foris DAX Trust Company, the entity behind Crypto.com will serve as the custodian for the fund.
It will ensure secure storage of the digital assets and Yorkville America Digital, an asset management firm, has just been named as the ETF's sponsor.
Together, these organizations bring experience in crypto custody and fund management to the table.
The daily value of the fund will be determined using reference rates provided by the Chicago Mercantile Exchange (CME).
For Bitcoin, the CME CF Bitcoin Reference Rate, which aggregates trading data from several major crypto exchanges, will be used.
Similarly, the CME CF Ether Reference Rate will be used to value the Ethereum portion unless the sponsor chooses otherwise.
Finally, to make sure that investors enjoy maximum security, the fund’s crypto holdings will be stored in cold wallets.
Truth Social first submitted the S-1 filing for its ETF on June 16.
Since then, anticipation around the SEC’s acknowledgment has grown, especially considering the increasing demand for diversified crypto investment products.
The acknowledgment is an important one, because it kickstarts the official timeline for the SEC to either approve or reject the ETF.
This move also comes amid a larger inflow of crypto ETF applications, with companies racing to launch offerings in the wake of Bitcoin spot ETF approvals earlier last year.
As it stands, the SEC is now under pressure to provide clearer regulations, and industry players are hoping for more consistent rules on these kinds of products.
While the Truth Social ETF advances to the next stage of consideration, another major crypto ETF has hit a roadblock.
The SEC has once again delayed its decision on Fidelity’s proposed spot Solana ETF.
This application was originally filed on March 25 through the Cboe BZX Exchange, and has now been opened to a new public comment period.
Solana ETF delayed again | Source: Twitter
Stakeholders have 21 days to provide feedback, and rebuttals are allowed up to 35 days from the publication date.
ETF analyst James Seyffart of Bloomberg commented on the delay and mentioned that it was “expected.”
He also pointed out that while this may seem like a setback, it could actually be great for constructive engagement between the SEC and ETF issuers.
Despite the delay in Fidelity’s Solana ETF, there are some major signs that the SEC is warming up to the idea of crypto exchange-traded products (ETPs).
According to Seyffart, there have now been reports of the SEC asking issuers to revise and refile their Solana ETF applications by the end of the month.
While these are not approvals, these interactions show an increasing rate of dialogue between the regulator and the financial firms behind these products.
Seyffart noted that “any sort of interaction between SEC and issuers/exchanges should be viewed positively,”
Positive interactions towards the ETFs | Source: Twitter
Investors, analysts, and crypto advocates will be watching closely in the coming weeks as the SEC mulls the Truth Social ETF proposal and reopens discussions on other pending applications.
If approved, this crypto ETF could mark another step forward for crypto adoption.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.