The New York Stock Exchange division, NYSE Arca, has applied to the United States Securities and Exchange Commission SEC to launch a fund backed by Trump Media & Technology Group, the parent company of Truth Social, led by the United States President Donald Trump.
The exchange submitted a 19b-4 filing to the SEC on June 03, for a bitcoin-tracking fund, similar to existing spot Bitcoin ETFs, aiming to mirror the cryptocurrency’s price movements and provide investors with direct exposure to Bitcoin’s market performance.
NYSE Arca Applies For a Bitcoin ETF
The filing was made on behalf of crypto asset manager Yorkville America Digital, a partner of Truth Social’s owner, Trump Media & Technology Group. The filing didn’t specify a management fee or ticker symbol. Still, it named Foris DAX Trust Company, which already handles Crypto.com’s assets, as the proposed custodian for the fund.
The ETF filing comes after Trump Media signed an agreement with Yorkville America Digital and Crypto.com to debut a series of “Made in America” crypto ETFs.
The Truth Social Bitcoin ETF’s 19b-4 filing has triggered the SEC’s review process, kicking off a 45-day clock for the agency to decide on the application’s fate. The SEC can choose to accept, reject, or extend the review period, with a maximum limit of 240 days.
Trump and Crypto
The proposed Trump-linked Bitcoin ETF, called Truth Social Bitcoin ETF, would join a competitive market with 11 existing Bitcoin ETFs. The market is currently dominated by BlackRock’s iShares Bitcoin Trust ETF (IBIT), which has nearly $69 billion in assets under management. Despite the competitive landscape, experts believe the Trump-linked ETF could attract significant capital due to Trump’s popularity, especially among American conservatives.
It’s worth noting that the ETF is still subject to regulatory approval, and its success is uncertain. However, if approved, it could mark the first investment scheme tied to a US president.
Trump’s growing crypto empire could further fuel controversy surrounding potential conflicts of interest between his presidential duties and personal financial interests. Critics even accuse him of profiting from the presidency, particularly through his family’s crypto ventures, which include multiple non-fungible tokens (NFTs), two memecoins, a stablecoin, a crypto mining firm, and a decentralized finance (DeFi) Platform.
