Trump Media filed an S-1 with the SEC to launch a Bitcoin ETF under its Truth Social brand, expanding its footprint into digital assets.
The Trump Media and Technology Group, which operates the Truth Social media platform and is majority-owned by US President Donald Trump, has filed with the US Securities and Exchange Commission (SEC) to establish a Bitcoin exchange-traded fund (ETF).
According to an announcement from Trump Media, on June 5, TMTG submitted an initial registration statement on Form S-1 for its Truth Social Bitcoin (BTC) ETF.
The document is as follows:
“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.“
NYSE Arca, a stock exchange, submitted a proposal to the SEC to list the Truth Social Bitcoin ETF on behalf of Yorkville America Digital, a crypto asset manager and a partner of Trump Media and Technology Group, the proprietor of Truth Social.
Accordingly, the filing has been made.
Structure Of Exchange-Traded Fund
Crypto.com will serve as the exclusive custodian, prime execution agent, and liquidity provider for the Truth Social Bitcoin ETF, provided it is approved.
Regulatory sanction for the ETF is being sought in the United States, where it is one of a growing number of new crypto products.
Exclusivity clauses are included in the new fund.
As the filing indicates, Crypto.com will exclusively provide specific services to the trust that underpins the product.
The product fees are still pending.
Front-Running? Absolutely
The filing also retains the option for the ETF’s sponsor to front-run transactions. The text of the document is 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.“
Although numerous Bitcoin ETF filings acknowledge potential conflicts of interest, they generally incorporate measures to mitigate them.
ETF holders will also forfeit their entitlement to the associated asset in case of a bifurcation.
As previously stated, “the Sponsor will cause the Trust to permanently and irrevocably abandon the Incidental Rights.”
