Trump Media and Technology Group (TMTG), the company controlled by U.S. President Donald Trump that operates its Truth Social social media platform, has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin exchange-traded fund (ETF).
According to the company announcement, TMTG filed a preliminary registration statement (Form S-1) for the Truth Social Bitcoin (BTC) ETF on June 5. The document states:
“The trust's assets primarily consist of Bitcoin held by a custodian on behalf of the trust. The trust aims to roughly reflect the performance of Bitcoin prices.”
Prior to this application, the New York Stock Exchange (NYSE Arca) submitted a proposal to the SEC to list the Truth Social Bitcoin ETF on behalf of the cryptocurrency asset management company Yorkville America Digital (a partner of TMTG and owner of Truth Social).
If approved, the Truth Social Bitcoin ETF will have Crypto.com as its exclusive custodian, primary executing agent, and liquidity provider. This ETF is one of the growing number of cryptocurrency products seeking regulatory approval in the U.S.
The new fund includes exclusive terms. According to the document, Crypto.com will provide certain exclusive services for the trust behind the product. The product fees are yet to be determined.
The document also appears to reserve the right for the ETF's sponsors to engage in front-running trades. It states:
“Potential shareholders should note that these individuals may take positions in Bitcoin that are contrary to or ahead of the positions held by the trust. There is no guarantee that any of the above circumstances will not adversely affect the performance of the trust.”
While many Bitcoin ETF application documents acknowledge potential conflicts of interest, they typically include measures to mitigate such conflicts.
In the event of a fork, ETF holders will also not be entitled to the corresponding assets. The document explains: “The sponsors will cause the trust to permanently and irrevocably waive any ancillary rights.”
Related: Trump Crypto Wallet Controversy: The True vs. False "Official" Dispute Causes Market Turmoil
Original text: “Trump Media Files Spot Bitcoin (BTC) ETF Application with SEC”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
