Trump Media Files for Spot Bitcoin ETF
Trump Media and Technology Group (TMTG), the parent company of Truth Social and majority-owned by U.S. President Donald Trump, has filed with the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin exchange-traded fund (ETF).
In a June 5 announcement, the company confirmed it had submitted a Form S-1 registration for the Truth Social Bitcoin ETF. According to the filing, the trust’s assets will primarily consist of Bitcoin held by a custodian and will aim to track the cryptocurrency’s price performance.
The move follows NYSE Arca’s proposal to the SEC to list the ETF on behalf of Yorkville America Digital, TMTG’s partner in this initiative.
If approved, the ETF will rely on Crypto.com to serve as the exclusive custodian, prime execution agent, and liquidity provider. The filing notes that certain services from Crypto.com will be exclusive to the ETF, though product fees have not yet been disclosed.
One notable element of the filing is a clause that appears to allow the ETF’s sponsor to engage in trading activity ahead of the trust’s own transactions. It states that some parties may take Bitcoin positions that are “opposite, or ahead of, the positions taken for the Trust,” and cautions that this could affect performance. While similar risks are acknowledged in other ETF filings, most include measures to reduce potential conflicts of interest.
In the event of a Bitcoin fork, the filing also makes clear that shareholders will not be entitled to any resulting assets. The sponsor would instruct the trust to “permanently and irrevocably abandon” any associated rights.
Sources:
https://cointelegraph.com/news/trump-media-files-spot-bitcoin-etf-sec
https://www.sec.gov/Archives/edgar/data/2071486/000110465925056683/tm2517117-1_s1.htm