Truth Social’s Bold Crypto Venture: SEC May Have a New Toy to Play With

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Dear reader, a momentous day is upon us! The United States regulators have officially begun the examination of a new spot-crypto fund, which might just be the next big thing—or, perhaps, an exceedingly well-groomed folly. In any case, the Investors shall remain in suspense until the United States Securities and Exchange Commission delivers its final, oh-so-anticipated verdict. But fear not, the mere filing suggests that the world of directly held crypto products is slowly, ever so cautiously, being embraced.

Oh! The ETF Application Sparks Quite the Stir

It is no less than a delightful conundrum, according to the filing. Trump Media’s Truth Social unit, of all places, has expressed its desire to have an ETF gracing the illustrious floor of the NYSE Arca. The proposed fund would be comprised of 75% Bitcoin and 25% Ether—quite the exotic mix, wouldn’t you agree? The sponsorship will be provided by Yorkville America Digital, while Foris DAX Trust Company, Crypto.com’s most trustworthy arm, will guard the coins. A most charming display of trust, I dare say. The S-1 form was submitted on June 16, thus commencing a 45-day review clock, which is as exciting as watching a tea kettle come to a boil.

Custody and Valuation Rules: How Delightfully Secure

Now, as for the rather technical details, the fund intends to value Bitcoin each trading day using the CME CF Bitcoin reference rate. Ether, on the other hand, shall adhere to the CME CF Ether rate, unless the sponsor—rather boldly—decides upon another source. In a rather sensible and prudent manner, private keys for these valuable assets will reside in a cold wallet, separated from customer accounts. This setup, I gather, aims to soothe the longstanding fears of hacking, theft, and all manner of confusion that might occur with custody failures. Quite reassuring, indeed!

And So, a Sea of Bids Arises

One might be forgiven for thinking that Wall Street giants like BlackRock and Fidelity are not to be outdone. They have already filed applications for pure-Bitcoin ETFs. Some firms, not to be outshone, have even suggested Ether-only funds. Now, a daring new contender— a dual-asset product—has entered the scene. Should the SEC finalize its proposed “automated” listing framework, we might soon see reviews shortened from months to mere weeks. What a time to be alive!

Meanwhile, in a most unexpected turn of events, Fidelity’s spot-Solana ETF has experienced yet another delay. The SEC has graciously extended the March 25 application and has opened a new window for public comment. 21 days for feedback and 35 days for replies. A veritable dance of bureaucracy, if you will. James Seyffart, the analyst from Bloomberg, suggested this delay was to be expected, highlighting the agency’s continued “fine-tuning” of data and disclosures. One must always aim for perfection, it seems.

What Lies Ahead for Investors?

The ball is now firmly in the court of the SEC. The regulators may approve, return with comments, or reject the bid altogether. Should the agency continue to push for quicker, automated reviews, we could be seeing spot-crypto ETFs on the market by the end of the year. Until then, every little tweak—be it an amendment request or a public comment—will carry great weight for those funds backed by Bitcoin, Ether, and perhaps even other assets we haven’t yet considered. Who can tell, really? The future is so deliciously uncertain.

The ETF Race Heats Up

Oh, but there is more at stake here than just branding! The fees, the trading speed, and most importantly, trust in custody will all play a crucial role in determining which funds will ultimately attract the most glorious sums of money. With nearly 10 proposals already in the race, one can hardly keep up. Investors, I implore you, stay vigilant! Watch those filings, keep an eye on deadlines, and act swiftly—if your nerves can bear it, that is.

The race began with Trump Media’s Truth Social filing, and who knows? It might very well end, whether in triumph or defeat, under the banner of this bold new entrant. Truth Social’s venture has certainly added a touch of novelty to the increasingly crowded world of regulated crypto products. What a spectacle it shall be! 🎭💰

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2025-07-08 18:20