A new spot Bitcoin exchange-traded fund (ETF) tied to Truth Social, the media platform owned by Donald Trump, has been filed for listing.

A new spot Bitcoin exchange-traded fund (ETF) has been filed for listing on the New York Stock Exchange and will be tied to Truth Social, the media platform owned by Donald Trump.

The new fund is being launched by a partnership between Truth Social and Yorkville America Digital, LLC. It will be a product of Trump Media and Technology Group (NASDAQ:DJT), which is majority-owned by the US president.

The ETF is being applied for through a Form 19b-4, which was submitted on June 4 by NYSE Arca to the U.S. Securities and Exchange Commission (SEC). It is part of Trump Media’s broader efforts to expand into the digital asset space.

Truth Social Files to Launch Spot Bitcoin ETF

According to the official SEC filing, the ETF is to track the price performance of Bitcoin (BTC). It will be sponsored by Yorkville America Digital, LLC, and the custodian services will be provided by Foris DAX Trust Company.

The filing mentions that, “The Trust seeks to reflect generally the performance of the price of Bitcoin,” to be stated net of the applicable Trust expenses and other costs.” No trading ticker or fee structure was yet announced.

A Form 19b-4 is a required step for any ETF to be listed on a U.S. exchange. It allows the SEC to commence its review process, which may include soliciting public comments and feedback on the application.

Sponsor and Custodian Details Confirmed

As the sponsor of the ETF, Yorkville America Digital will be in charge of managing the trust and ensuring its compliance with relevant market regulations. Previously, the investment firm was described as an “America-first asset management firm.”

Meanwhile, the custodian services for the Bitcoin assets will be provided by Foris DAX Trust Company, which is an affiliate of Crypto.com. Back in April 2024, Trump Media announced a partnership with Crypto.com to support the launch of cryptocurrency ETFs.

This collaboration will also include establishing custodial and infrastructure support through Foris DAX and providing liquidity services for the ETFs.

The partnership with Crypto.com came shortly after Trump Media announced plans to expand Truth Social’s tokenized offering with the launch of a Trump coin wallet.

Earlier this year, Truth.Fi, a variable interest entity (VIE) wholly owned by Trump Media, was granted approval by the SEC to engage in direct investment activities.

This authorization allows Truth.Fi to invest over $250 million in a wide range of financial products, including ETFs, Bitcoin, and similar instruments.

Trump Media's Crypto Strategy Expands

This ETF filing follows a number of financial developments from Trump Media. In recent months, the company created a corporate Bitcoin treasury and announced a $2.5 billion offering to fund the company's new financial products.

These funds will also support the company's venture into Bitcoin ETFs and other strategic initiatives.

Truth Social’s entry into the ETF market places it alongside other firms pursuing spot cryptocurrency ETFs. While the SEC has approved several futures ETFs for major cryptocurrencies, it has yet to greenlight any spot crypto ETFs.

Despite receiving advice from its internal advisors to reject all pending spot crypto ETF applications in December 2023, the SEC is still actively reviewing these products.

The SEC, under new Chairman Paul Atkins, has shown an adjusted stance toward digital assets. Recent policy moves have included the dropping of several investigations into crypto companies and the promotion of an open dialogue with the industry.

News data source: kdj.com

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