Trump Media and Technology Group is the US president Donald Trump’s majority-owned company that operates his Truth Social media network. The SEC has approved the launch of a Bitcoin Exchange-Traded Fund (ETF) by Trump Media and Technology Group.
On June 5, TMTG registered its Truth Social Bitcoin ETF using Form S-1. announcement The company. The company filing reads:
“The assets of the Trust consist primarily of bitcoin held by a custodian on behalf of the Trust. The Trust seeks to reflect generally the performance of the price of Bitcoin.”
After NYSE Arca sent a request to the SEC, NYSE Arca filed a filing. to list the Truth Social Bitcoin ETF Truth Social is owned by TMTG and managed by crypto asset management company Yorkville America Digital.
Related: Trump’s crypto ties cloud digital assets legislation in Congress
ETF is a setup
Crypto.com, a cryptocurrency exchange, will act as the exclusive custodian and prime execution agent of Truth Social Bitcoin ETF if it is approved. This ETF is one of a growing number of crypto-based products that are seeking approval from the US regulatory authorities.
There are exclusivity clauses in the fund. Crypto.com, according to the filings, will only offer specific services to trusts that are behind products. It is still unknown what the product costs will be.
Related: Trump memecoin wallet in ‘absolute chaos’ as family org unaware of launch
Front-running? Please say yes
It appears that the filing reserves to the sponsor of the ETF the right to conduct front-running transaction. It reads as follows:
“Prospective Shareholders should be aware that such persons may take positions in bitcoin which are opposite, or ahead of, the positions taken for the Trust. There can be no assurance that any of the foregoing will not have an adverse effect on the performance of the Trust.”
Many Bitcoin ETFs include mitigation measures for potential conflicts of interests, even though they acknowledge the possibility.
If the ETF is split, the holders of the ETF will have the same right. As explained, “the Sponsor will cause the Trust to permanently and irrevocably abandon the Incidental Rights.”
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
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Source: cointelegraph.com
