- Trump Media’s Bitcoin ETF will track Bitcoin’s price performance, providing direct exposure.
- Crypto.com will handle custody, liquidity, and execution for Trump Media’s Bitcoin ETF.
- The Bitcoin ETF’s launch depends on SEC approval, with shares listed on NYSE Arca.
Trump Media and Technology Group Corp. (TMTG), the company behind Truth Social, Truth+, and Truth.Fi has amended its registration statement with the U.S. Securities and Exchange Commission (SEC) in an application to create its proposed Truth Social Bitcoin Exchange-Traded Fund (ETF).
The ETF will directly hold Bitcoin with the aim of tracking its price performance. It aims to track the market trends of the cryptocurrency and provides an opportunity for investors to be exposed to Bitcoin without directly owning the currency. With the ticker symbol “B.T.,” the ETF will be listed on NYSE Arca after approval.
Crypto.com’s Role as Exclusive Custodian
Crypto.com is expected to become the exclusive Bitcoin custodian, Bitcoin prime execution agent, and liquidity provider to the Truth Social Bitcoin ETF. Crypto.com, as the official custodian, will guarantee the safekeeping of Bitcoin, which is critical to investors who are concerned with stable exposure to the digital currency. The role of custodian adds to the operational context of the ETF, providing the necessary liquidity and security for Bitcoin transactions within the fund.
Trump Media’s Truth Social Bitcoin ETF is among the various cryptocurrency funds that the SEC is still considering. These other high-profile funds include Grayscale Solana Trust and Canary Capital Litecoin ETF. The acceptance of the Truth Social Bitcoin ETF would be a key step in the direction of Trump Media, as the organization would be further involved in the cryptocurrency market.
Pending SEC Approval and Market Response
The Truth Social Bitcoin ETF will only be launched if the SEC registration statement approval and the Form 19b-4 filing are granted, as the company has filed an amendment. The SEC’s approval process involves a thorough review, and delays are common for cryptocurrency-related ETFs. Trump Media has stated that it will start the fund after getting the required permits.
Investors and market analysts keenly observe the SEC’s move on this ETF. Upon approval, it would not only introduce another investment vehicle linked to Bitcoin. It would similarly be the first crypto ETF linked to a sitting U.S. president’s business interests.
Critics have also expressed concerns about the transparency of Trump Media’s crypto ventures despite the potential benefits. Senators Elizabeth Warren and Jeff Merkley have criticized Trump Media’s cryptocurrency initiatives.
This has caused some controversy regarding possible conflicts of interest, considering that the ETF is linked to Trump Media and its founder, Donald Trump. The SEC, however, has not yet formally expressed objections to the fund, and it is still under review.
Related: Trump to Sign Executive Order to Include Private Equity and Crypto in 401(k)s
Trump Media’s Crypto Strategy and Future Plans
Furthermore, the Truth Social Bitcoin ETF is an extension of Trump Media’s wider strategy to become more involved in the cryptocurrency industry. The company has expressed interest in holding Bitcoin as part of its corporate treasury and plans to implement a Bitcoin treasury strategy. Furthermore, Trump Media will provide retail crypto services using Truth.Fi to further expose digital assets to financial offerings.
The company has also suggested that it may launch ETFs of other digital assets, such as Ethereum, in the future. This action signifies an increase in demand for providing investors with diversified access to the cryptocurrency market.
