In a major development bridging politics and finance, the U.S. Securities and Exchange Commission (SEC) has officially acknowledged and initiated the evaluation process for a proposed exchange-traded fund (ETF) filed by Trump Media & Technology Group. The ETF, which includes exposure to both Bitcoin (BTC) and #Ethereum (ETH), marks a significant milestone in the ongoing mainstream adoption of digital assets.
š Fund Structure: A Dual Exposure Approach
According to the filed application, the proposed ETF will be composed of:
75% #Bitcoin (BTC)
25% Ethereum ($ETH )
This allocation offers investors exposure to two of the most established cryptocurrenciesāBitcoin, the original digital store of value, and Ethereum, the leading platform for decentralized applications and smart contracts. The dual-asset model presents a differentiated approach compared to other single-asset crypto ETFs currently in the market.
---
š¦ Custody and Sponsorship Details
Custodian: Crypto assets will be securely held by Foris DAX Trust Company, a subsidiary of Crypto.com, with custody maintained via cold storage and segregated from client accounts to ensure security and compliance.
Sponsor: The ETF is sponsored by Yorkville America Digital, a digital asset management firm with a growing footprint in the blockchain finance ecosystem.
---
š Valuation Mechanism and Pricing Transparency
The ETFās net asset value will be calculated daily using indices from the CME Group, providing a transparent and standardized pricing model:
Bitcoin: CME CF Bitcoin Reference Rate (CME CF BRR)
Ethereum: CME CF Ether Reference Rate (subject to revision by the sponsor)
These rates are derived from aggregated price data across major exchanges and are widely used in institutional crypto markets.
---
š SECās Evolving Stance on Crypto ETFs
This application is being seen by analysts as a potential shift in the SECās overall approach to digital asset ETFs. Recent developments suggest a differentiated regulatory treatment:
The #SEC has delayed decisions on altcoin-related ETF applications, including Fidelityās #Solana ($SOL ) ETF.
In contrast, the acceptance and review of a Bitcoin-Ethereum ETF backed by Trump Media may reflect a more favorable regulatory attitude toward blue-chip digital assets.
James Seyffart, a Bloomberg ETF analyst, commented:
> āWe may now be seeing early signs that the SECās historically resistant stance toward crypto ETFs is beginning to soften, particularly for well-established assets like Bitcoin and Ethereum.ā
---
šŗšø Political Undercurrents: The #TRUMP Factor
The ETF proposal also carries significant political weight. Former President Donald Trumpāwho has increasingly vocalized support for digital assets and has criticized traditional fiat systemsāmay be using this initiative as part of a broader campaign strategy aimed at attracting pro-crypto voters.
With this ETF, Trump is positioning himself not only as a political figure but also as a proponent of financial innovation. His past remarks about fiat currency being āhopelessā signal a strong ideological alignment with the decentralized finance movement.
---
š Conclusion: A Potential Game-Changer for the Crypto Market
If approved, the Trump Media Bitcoin-Ethereum ETF would become the first-ever hybrid spot ETF involving both BTC and ETHātwo of the most prominent digital assets by market capitalization. Its launch could:
Accelerate institutional and retail adoption of cryptocurrencies.
Elevate the political profile of digital assets during a critical election cycle.
Signal a strategic pivot within the SEC toward more crypto-friendly policies.
The SECās final decision is expected in the coming weeks. Regardless of the outcome, this initiative firmly re-establishes Donald Trumpās presence in the crypto space and underscores the growing intersection of digital finance and U.S. politics.
