The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the Truth Social Bitcoin ETF from Trump Media & Technology Group to September 18, 2025. This delay is similar to others involving crypto ETFs, such as Grayscale’s Ethereum ETF and Canary Capital’s Litecoin ETF.
Why the SEC Hit Pause
The SEC’s delay mainly comes from concerns about staking and in-kind redemptions, which are important parts of crypto ETFs. Staking lets investors earn rewards by holding digital assets, but raises questions about investor protection. In-kind redemptions involve trading shares for crypto assets, which can risk market manipulation.
Notably, the agency is examining these issues closely, particularly for Solana-based ETFs. Under the new chair, Paul Atkins, the agency is being cautious to ensure strong rules are in place before confirming new ETFs.
The SEC typically has a 270-day review period, but Atkins’ focus on compliance may slow things down. Similar delays have affected Grayscale’s Ethereum ETF and Canary’s Litecoin ETF, pointing to a broader regulatory pause. These hold-ups challenge the patience of the crypto industry as it seeks to become mainstream.
Impact on Crypto and Trump Media
The delay affects Trump Media’s crypto efforts, including plans for a Bitcoin treasury and a dual Bitcoin-Ethereum ETF. Investors looking for regulated crypto options may face longer uncertainty, which could lessen market excitement. According to sources, 72 crypto ETF applications are waiting for SEC review, showing the stakes are high.
Despite these delays, institutional interest is strong, with $55 billion flowing into Bitcoin ETFs since January 2024. However, these setbacks may slow the growth and mainstream acceptance of the crypto market.
Enthusiasts point out political implications, suggesting the the agency’s cautious approach is linked to Trump’s high-profile involvement with Truth Social. These regulatory hurdles reflect the tension between innovation and oversight, leaving some crypto supporters frustrated.
Still, there is optimism, with betting odds on Polymarket favoring eventual approval for a Litecoin ETF. The delays might help refine ETF structures, improving protections for investors. For now, Trump Media and crypto enthusiasts must wait for clearer regulations.
The Truth Social Bitcoin ETF combines Trump’s brand with the growing world of cryptocurrencies. However, the SEC’s caution highlights the challenges ahead in navigating the intersection of traditional finance and digital assets.
