Trump Media’s Bitcoin ETF in limbo as SEC extends review timeline to September

The US Securities and Exchange Commission (SEC) has postponed the approval of the Truth Social Bitcoin ETF. A ruling, which had previously been anticipated in July, has been postponed until September 18, 2025, according to an official filing issued on Monday.

The ETF is linked to Truth Social, the social media app closely associated with President Donald Trump, who is also an active user on the platform. Trump Media submitted their ETF application in June, positioning them to be one of the early entrants into the rapidly growing digital asset investment space.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” added the SEC in the letter.

The delay means investors and analysts will wait at least two months before determining whether regulators approve a Bitcoin ETF linked to a politically charged brand. The fund would let small-dollar investors of the traditional variety gain access to Bitcoin as they buy shares on regular stock exchanges, without holding the cryptocurrency itself.

If approved, the Truth Social Bitcoin ETF would only solidify Trump’s burgeoning sway in the crypto world. It would also add a politically branded fund to a category already setting records for investor demand.

Approved crypto ETFs thrive as others face delays

Since the beginning of the year, the SEC has green-lighted 12 spot Bitcoin ETFs, unleashing a wave of traditional investor access to the digital currency. Together, the ETFs have pulled in over $54.8 billion, making them one of the most successful U.S. ETF launches ever.

Riding the wave, the SEC also approved Ethereum ETFs, solidifying crypto’s position in the pantheon of traditional finance. But other approvals have been more sluggish. The SEC remains cautious in considering ETFs for other digital assets such as Solana, Cardano, and Dogecoin.

The SEC also delayed its decision on the Grayscale Solana Trust ETF on the same day it delayed the Truth Social ETF. The justices are now likely to issue a ruling by October 10. A handful of asset managers, including VanEck, Bitwise, 21Shares, and Canary, are vying for approval of their Solana-tethered ETFs.

It’s not unusual for a cryptocurrency ETF decision to be delayed. The law allows the SEC as much as 240 days to make a final decision, during which it will weigh factors, including market stability, investor protection, custody arrangements, and susceptibility to market manipulation.

Trump pushes pro-crypto agenda

Once a crypto skeptic, Donald Trump has recently emerged as a high-profile technology booster.

In the past few months, he has consistently expressed support for the crypto industry. He has also vowed to establish the United States as the global “crypto capital” and to cut regulatory red tape for digital assets.

In a bold decision, Trump also selected long-time crypto supporter Paul Atkins as Chair of the SEC. Under Atkins, the Commission has reportedly been more open to crypto innovation, but cautiousness around altcoin products and politically affiliated initiatives like the Truth Social ETF still reigns.

The president’s crypto ties are expanding. His name is linked to meme coins like TRUMP and MAGA, and his family is affiliated with a decentralized finance (DeFi) project called World Liberty Financial. 

Since Trump took office in January, the SEC has witnessed a significant boost in interest in ETF products tied to cryptocurrencies, everything from serious institutional products down to highly speculative altcoin funds.

Still, regulatory oversight remains firm. Whilst the Trump-SEC has made strides in embracing the wider crypto-sphere, investor protection remains a top priority for the Commission.

In the meantime, we can call a time-out on Trump Media’s Bitcoin ETF, frozen in a broader debate over how fast the U.S. should adopt digital assets. The September decision could become a turning point for politically sponsored crypto finance or bolster the SEC’s hesitancy.

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