#SECETFApproval The U.S. Securities and Exchange Commission (SEC) has officially accepted the application from Trump Media for the launch of an exchange-traded fund (ETF) focused on Bitcoin and Ethereum. The document review period has begun.
According to the application, the fund from Trump's media company will be traded on the NYSE Arca exchange and will give investors access to the two largest cryptocurrencies. Of this, 75% of the assets are planned to be invested in Bitcoin, while the remaining 25% will be in Ethereum.
The custodian of the fund's assets will be Foris DAX Trust.
Truth Social submitted its first S-1 form for the launch of an ETF linked to Bitcoin and Ethereum back on June 16. If the fund is approved, it will compete with giants like BlackRock, whose iShares Bitcoin ETF has already gathered over $72.5 billion in assets under management.
Meanwhile, the SEC is reviewing other applications and developing a streamlined listing mechanism for all similar funds.
The fund from Truth Social will be sponsored by Yorkville America Digital. For calculating the daily value of the Bitcoin ETF, the CME CF Bitcoin Reference Rate will be used. It collects data from leading cryptocurrency exchanges and reflects the average market price.
The valuation of Ethereum in the fund will also be conducted based on the CME CF Ether Reference Rate, unless the sponsor decides otherwise.
