Trump Media & Technology Group has filed a registration statement B.T. is launching the Truth Social Bitcoin and Ethereum ETF in partnership with the U.S. Securities and Exchange Commission.
It is important to note that the word “you” means “you”. ETF Directly hold Bitcoin The initial allocation is 75% Bitcoin, 25% Ether. The fund shares will be available to investors as a way to follow the performance and value of these assets. They are also expected to trade once the fund has been approved on NYSE Arca.
Crypto.com was selected to be the ETF’s exclusive custodian and prime execution agent. They will also provide staking services, liquidity, as well as staking. Yorkville America Digital, LLC sponsors the fund.
According to the company announcement, “The launch of the Truth Social Bitcoin and Ethereum ETF is pending effectiveness of the Registration Statement as well as approval of a Form 19b-4 filing with the SEC.”
The fund has been structured in the form of a Nevada Business Trust. Authorized participants will issue and redeem shares in 10,000-share blocks, using cash for both creation and redemption. ETFs may in future offer transactions that are in kind, subject to additional regulatory approval.
Trump Media acknowledges. “A registration statement relating to the Shares has been filed with the SEC but has not yet become effective. The Shares may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.”
ETFs are not subject to the Investment Company Act of 1940. This act governs traditional ETFs and mutual funds by setting rules for investor protection, fund disclosures and operations. The ETF is not subject to these rules because it holds Bitcoin and Ether in its own account, rather than as securities.
Trump Media’s ETF filing reflects its overall strategy, which is to expand beyond social media streaming into the space of digital assets. The company has clearly positioned itself for competition in the digital assets space with the launch of Truth.Fi.
The Truth Social ETF, if approved, would provide investors with a direct and regulated way to invest in both Bitcoins and Ethers through a single fund. Trump Media’s expansion into financial services signals its intention to enter the market.
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Source: bitcoinmagazine.com
