SEC Acknowledges Trump Media’s Bitcoin and Ethereum ETF Application
The US Securities and Exchange Commission (SEC) has officially acknowledged Trump Media‘s application for a combined Bitcoin and Ethereum exchange-traded fund (ETF). This step initiates a review period during which the SEC will decide whether to approve or reject the proposed fund. The ETF is designed to provide exposure to Bitcoin (BTC) and Ether (ETH) through shares on NYSE Arca, with allocations of 75% to Bitcoin and 25% to Ether.
Key Players and Fund Structure
Foris DAX Trust Company, known as Crypto.com, will act as the custodian, while Yorkville America Digital will serve as the sponsor. This filing is part of a broader trend of increasing interest in cryptocurrency ETFs. The SEC is reportedly considering a more streamlined process for such applications to expedite approvals.
Valuation and Security Measures
The ETF’s net asset value will be calculated daily. The Bitcoin portion will use the CME CF Bitcoin reference rate, and the Ether portion will rely on the Ether CME CF reference rate. To ensure security, the custodian will store the fund’s Bitcoin and Ether in separate accounts, with private keys kept in cold storage.
Regulatory Developments and Analyst Insights
In a related development, the SEC has postponed its decision on Fidelity‘s proposed spot Solana (SOL) ETF, inviting public comments. Analysts, including James Seyffart, interpret the SEC’s active dialogue with issuers as an encouraging indicator for the future of cryptocurrency exchange-traded products.
