Trump's Truth Social files S-1 for a Bitcoin ETF

Donald Trump’s Truth Social is submitting its S-1 form to the US Securities and Exchange Commission (SEC) to offer a Bitcoin ETF. This corresponds to the company’s 19b-4 filing.

Like the other spot BTC ETFs, the fund is designed to track the price of Bitcoin and offer a simpler way for investors to gain exposure without holding the asset directly.  Crypto.com will be the only company that stores, executes, and provides liquidity for the ETF’s Bitcoin.

However, the Truth Social Bitcoin ETF launch is pending until the Registration Statement goes into effect and a Form 19b-4 filing with the SEC is approved. NYSE Arca will list the Shares when they go public. 

Trump Media looks to add to current market offerings

The NYSE Arca filed a 19b-4 form to list and sell shares of this fund and has already started the approval process in earnest. According to the S-1 form, Yorkville America is supporting the fund. However, some important information is missing from the file, like the fund’s ticker, seed capital, or share price.

The filing statement for a Bitcoin ETF by Trump Media is a big step for the company to grow beyond its current social media, streaming, and fintech businesses. With this move, DJT can take advantage of the growing interest among institutions in Bitcoin investment vehicles. 

The business is setting this up as a physically-backed Bitcoin product. The ETF will hold real Bitcoin instead of swaps or futures contracts.

This project aligns with the company’s “Bitcoin treasury strategy,” which was partly talked about in forward-looking statements. It suggests that the company is interested in crypto in more ways than just the ETF product. 

Truth Social Bitcoin ETF survival odds in the competitive market

The market’s reception remains uncertain because Trump Media is a relatively new company dealing with well-known financial institutions with deeper experience in ETF management and distribution.

Since spot Bitcoin ETFs came out in January 2024, the market has grown to have more than $130 billion in assets. BlackRock’s iShares Bitcoin Trust (IBIT), which has assets worth nearly $69 billion, is the leader. 

The company already has a fintech brand called “Truth.Fi” that could be used as a distribution route, but the filing doesn’t say how this new product fits in with what they’re already doing.

Analysts believe it could be a new ground for this industry because it involves a company with ties to the US president. But Truth Social is late to the party because it is filing in an area where many ETFs are already very cheap and easy to trade.

In addition, this adds to the controversy about Trump’s involvement with the crypto industry. This might make it harder as investors doubt Trump’s crypto companies’ viability after his tenure.

However, it is good timing for Trump’s organization. As reported by Cryptopolitan, JPMorgan will start allowing its trading and wealth clients to borrow cash using crypto-related assets as collateral. 

Also, the bank will start including some clients’ crypto assets in their net worth figures. This means that Bitcoin and other digital assets will be treated the same as stocks, cars, and art. A law called the US Uniform Commercial Code (UCC) makes it easy to pledge stocks in the US.

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