Trump Media's Truth Social Bitcoin and Ethereum ETF Under SEC Scrutiny

SEC Reviews Application as of July 8

Hang on to your hats, crypto fans! Trump Media's sizzling application to list and trade shares of its Truth Social Bitcoin and Ethereum ETF is currently getting the once-over by the U.S. SEC as we speak on July 8. This could be huge!

Filing Details and Crypto Exposure

Get this—a recent filing spilled the beans that the U.S. Securities and Exchange Commission has taken the bait on Trump Media's application for a Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund. Truth Social first threw its hat in the ring with the SEC for this crypto ETF, juggling both Bitcoin and Ethereum, on June 16. Talk about bold moves!

What's the deal? The ETF is designed to give investors a piece of the action with the two biggest cryptos by market cap, Bitcoin and Ethereum. Investors can dive in through NYSE Arca shares, all backed by these two crypto heavyweights.

Allocation and Custodians

Here's the breakdown: the ETF plans to go big with a 75% slice for Bitcoin and a 25% chunk for Ether. Crypto.com, aka Foris DAX Trust Company, will be holding the bag as the custodian. Meanwhile, Yorkville America Digital, the asset management gurus, will be calling the shots as the fund's sponsor.

Evaluation and Flexibility

If the SEC gives it the thumbs up, Trump Media is all in to gauge each piece of its ETF using the CME CF reference rates. That means the Bitcoin three-quarter share will be calculated from a mash-up of trade data from major crypto exchanges. And yep, the same goes for the Ether portion of the fund.

But hold up—Trump Media's keeping its options open. They're hinting that all this could flip on a dime, based on the fund sponsor's gut feeling and "sole discretion." You know how it goes in the wild world of crypto!

SEC's Stance on Other Crypto ETFs

Meanwhile, word on the street is that the SEC's been nudging asset managers to re-up their Forms S-1 for spot Solana (SOL) ETFs before the end of July. Analysts like Bloomberg's James Seyffart have been scratching their heads over whether the SEC will ever greenlight another SOL ETF.

Remember earlier this year when the SEC finally gave the nod to the REX-Osprey SOL and Staking ETF? That baby, traded under the ticker SSK and the first-ever staking ETF in the U.S., raked in a cool $33 million in volume and $12 million in inflows on its debut day. The crypto world is buzzing!