Truth Social, the conservative social media platform backed by former President Donald Trump, has made a significant move into the crypto space. The platform, under the umbrella of the Trump Media and Technology Group, has applied for a Bitcoin ETF (Exchange-Traded Fund).
A Form 19b-4 was submitted to the NYSE Arca division on Tuesday, initiating the process for the Truth Social Bitcoin ETF. This ETF aims to follow the price movements of Bitcoin and requires approval from the Securities and Exchange Commission (SEC) to start listing and trading.
According to the application, “The Trust aims to mirror the performance of Bitcoin’s price, minus the Trust’s expenses and liabilities.” Yorkville America Digital, LLC is the sponsor of the Trust, while Foris DAX Trust Company, LLC is the custodian, as per the details mentioned in the application. Yorkville was previously described as an “America-first asset management firm” in a press release.
The Trump Media and Technology Group, listed on Nasdaq, operates Truth Social and Truth.Fi. The latter was established in January and green-lighted to invest up to $250 million of its $700 million+ cash reserves into traditional investment vehicles, SMAs, ETFs, Bitcoin, and “similar cryptocurrencies or crypto-related securities.” Recently, the group also established a corporate Bitcoin treasury with a $2.5 billion offering.
The SEC has been exhibiting a more favorable stance in its approach to regulating the crypto industry, including discontinuing certain lawsuits and investigations. Its new chair, Paul Atkins, has declared it a “new day” for the agency. This move by Truth Social is notable in the race for spot crypto ETFs, as it directly links a former president to the application.
Disclaimer: The Block is an independent media outlet offering news, research, and data. As of November 2023, Foresight Ventures, which invests in other crypto companies, is a majority investor in The Block. The Block operates independently to provide unbiased, impactful, and timely information about the crypto industry. This article is intended for informational purposes only and should not be considered as financial, legal, tax, investment, or other advice.
