The U.S. Securities and Exchange Commission (SEC) has acknowledged President Trump’s Truth Social filing to list its own Bitcoin ETF under NYSE. This only meant that the application would now be reviewed, and does not mean that it is approved or allowed to trade.
According to the filing, the ETF will invest directly in Bitcoin and track its price closely. The ETF will issue shares representing partial ownership of the Bitcoin held by the Trust. The shares will be listed under NYSE Arca Rule 8.201-E, which governs trust shares based on commodities.
Also, Trump Media’s original S-1 filing mentioned the fund would be investing in Bitcoin and Ethereum. But the SEC notice only refers to the “Truth Social Bitcoin ETF” and does not include Ethereum currently. This means the agency is only reviewing the Bitcoin portion for now.
The holdings will be held by Foris DAX Trust Company, LLC also known as Crypto.com. They will act as custodian of the fund for Bitcoin. All the bitcoin will be kept offline in cold storage so it can be more secure.
The fund’s net asset value (NAV) will be calculated daily by the Trust Administrator based on the CF Benchmarks Index. The index provides a daily USD price of Bitcoin based on the trading activity of several crypto exchanges.
This fund will allow investors to invest in Bitcoin without the hassle of purchasing or taking ownership of it themselves. Nevertheless, the SEC has to approve the S-1 registration and the 19b-4 proposed rule change first before the ETF can commence or trade.
Also Read: Saylor’s Strategy Adds $1B in BTC as Bitcoin Price Holds Steady