The US Securities and Exchange Commission (SEC) has officially acknowledged an application for a dual cryptocurrency exchange-traded fund (ETF) filed by Trump Media’s Truth Social, marking the beginning of a formal review process. This proposed ETF aims to offer exposure to both Bitcoin and Ethereum, with an allocation split of 75% Bitcoin and 25% Ether.

This filing, made on June 16, proposes that the ETF be listed on NYSE Arca and backed by actual crypto assets. The fund’s custodian will be Foris DAX Trust Company (doing business as Crypto.com), while Yorkville America Digital will act as the sponsor.

The SEC’s acknowledgment initiates a 240-day deadline for the regulator to either approve, reject, or request further amendments to the application, as per standard ETF procedures.

Structure and Custody: Safety Measures in Place

According to the filing, the ETF’s net asset value (NAV) will be calculated daily. The value of the Bitcoin portion will be based on the CME CF Bitcoin Reference Rate, an index aggregating price data from several major exchanges. Similarly, the Ether portion will follow the CME CF Ether Reference Rate, unless the sponsor determines otherwise.

In terms of security, the ETF will store its Bitcoin and Ether in cold storage wallets managed by Crypto.com, entirely separated from other client assets. This approach ensures the safeguarding of funds and aligns with best practices for institutional crypto custody.

The ETF aims to attract both traditional and digital asset investors by offering regulated, transparent access to the two largest cryptocurrencies without requiring them to manage wallets or private keys.

Solana ETF Faces Delay but Signals Progress

While Truth Social’s ETF has begun its journey through the SEC pipeline, another crypto ETF, Fidelity’s proposed spot Solana (SOL) fund has encountered a familiar roadblock. The SEC has once again delayed its decision, opening a new public comment period. Interested parties have 21 days to submit feedback and 35 days for rebuttals.

The Cboe BZX Exchange first applied to list the Solana ETF in March. While the delay was widely anticipated, Bloomberg ETF analyst James Seyffart pointed out that it still represents forward movement. He explained that the SEC’s request for issuers to amend and refile their applications suggests growing regulatory engagement with digital asset ETFs.

“This would just be more amendments and more back and forth, not approvals,” Seyffart posted on X, cautioning investors to interpret the developments as incremental progress rather than outright green lights.

Signs of Broader Regulatory Shift on Crypto ETFs

The SEC is reportedly considering a streamlined listing structure for crypto ETFs, aiming to reduce delays and automate large parts of the review process. If implemented, this could speed up approvals and offer a clearer regulatory pathway for new digital asset funds.

This potential reform comes at a time when multiple applications for crypto ETFs including those from financial giants like BlackRock, Fidelity, and now Trump Media, are pending review. The SEC’s recent actions, such as accepting the Truth Social ETF and engaging with Solana ETF proposals, suggest a softening stance on crypto ETPs (Exchange-Traded Products).

The increased interaction between issuers and the SEC may reflect a broader willingness to integrate digital assets into traditional financial markets under appropriate regulatory frameworks.

A New Era of Political and Crypto Convergence?

The Truth Social ETF marks a unique intersection between politics and finance, given its association with former US President Donald Trump and his media company. If approved, it could bring heightened visibility and mainstream legitimacy to crypto investments, especially during an election year.

Moreover, with multiple digital asset ETFs under review and the SEC signalling procedural changes, the industry may be entering a new phase of regulated growth. While approval is not guaranteed, the growing dialogue between issuers and regulators points to a more mature and collaborative approach to crypto fund management in the near future.