SEC Accepts Trump's Bitcoin and Ethereum Application: Countdown Has Begun!

The U.S. Securities and Exchange Commission (SEC) has officially accepted Trump Media's application for an exchange-traded fund (ETF) that includes Bitcoin (BTC) and Ethereum (ETH), initiating the evaluation process.

According to the application submitted by Trump Media, the fund planned to be listed on the New York Stock Exchange Arca will offer investors exposure to the two major cryptocurrencies with a ratio of 75% Bitcoin and 25% Ethereum. The custody services for the fund will be managed by Foris DAX Trust Company, operating under the name Crypto.com, while asset management company Yorkville America Digital will sponsor the fund.

The valuation of the ETF will be carried out daily, and the pricing of the Bitcoin component will be based on the CME CF Bitcoin reference rate, which is created from transaction data collected from leading cryptocurrency exchanges. The pricing of Ethereum will be determined based on the CME CF Ether reference rate, which the sponsor may adjust at their discretion.

According to the details specified in the application, the fund's Bitcoin and Ethereum assets will be held in accounts separate from other customer accounts by Crypto.com, and the private keys will be protected using cold storage methods.

On the other hand, the SEC's decision to postpone its ruling on Fidelity's Solana (SOL) focused ETF application and initiate additional commentary processes regarding the matter has drawn attention. Bloomberg ETF analyst James Seyffart emphasized that such interactions signal the SEC's generally positive movement regarding cryptocurrency ETFs.