The New York Stock Exchange (NYSE) meanwhile is secretly working on getting approval to list a Bitcoin and Ethereum ETF. This prospective ETF would have been shamelessly tied to Trump Media & Technology Group. An important proposed rule change would do just that. This is an important milestone in the SEC’s ongoing regulatory reform efforts to evaluate ETFs that hold digital assets. Recently, Trump Media & Technology Group has captured the imagination of the cryptocurrency space. Engaging with the SEC, they have raised capital through and filed prospectuses for some very exciting, new, crypto-related investment products.
Trump Media & Technology Group has partnered with Yorkville America. Collectively, they submitted a prospectus for the Truth Social Bitcoin and Ethereum ETF. This would be a first-of-its-kind investment vehicle investing 75% of its assets in Bitcoin and 25% in Ethereum. As noted, that was filed just eight days before the NYSE’s proposed rule change.
ETF Structure and Holdings
The proposed Truth Social Bitcoin and Ethereum ETF aims to provide investors with exposure to the two leading cryptocurrencies by market capitalization. The ETF is cleverly designed with a 75/25 allocation to BTC and ETH. This strategy is designed to capitalize on Bitcoin’s proven market leadership while benefiting from Ethereum’s potential for future growth.
This isn’t the first crypto play that Trump Media & Technology Group has investigated. Then in early June, they filed for a standalone Bitcoin ETF. They were calling it the Truth Social Bitcoin ETF, with Yorkville America assuming the sponsor’s role. In late May, the company did a dramatic capital-raising of $2.4 billion, with plans to build out its own Bitcoin treasury. As of this writing, Trump Media & Technology Group has made no public acquisitions in the digital asset industry.
Regulatory Pathway and Market Context
The 19b-4 rule changes filed by the NYSE are the primary procedural hurdle before an ETF can be considered. These filings are only the beginning. Note that no approval will be guaranteed by the SEC.
The Exchange believes that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices in that the shares will be listed and traded on the exchange pursuant to the initial and continued listing criteria in NYSE - SEC filing
This note highlights the NYSE’s dynamic approach to maintaining high quality, listed securities that inspire the highest levels of confidence in the marketplace.
At the time of the announcement, Bitcoin was priced at approximately $106,000. That was a 0.5% rise in the past 24 hours. Ethereum continued its climb back, with the second-largest cryptocurrency by market capitalization trading above $2,440, 1.1% higher than Monday’s open.
Broader Implications and Partnerships
It is interesting to point out that TMTG is majority owned by former President Donald Trump. This relationship has injected a new layer of political and public-interest scrutiny into the company’s moves into the cryptocurrency market.
Now, TMTG is apparently partnering with Yorkville America and Crypto.com. Together, they intend to release a whole slew of new “America First” products. This suggests a bullish vision for the incorporation of cryptocurrency. It’s supposed to bring products and services in line with the needs of an underserved or unserved market segment.
