The U.S. Securities and Exchange Commission (SEC) has formally acknowledged Truth Social’s application for a Bitcoin exchange-traded fund (ETF), marking a significant regulatory development. This acknowledgment represents a required procedural step under the NYSE Arca Rule 8.201-E framework but does not constitute approval of the proposed product.
The ETF aims to provide investors with direct Bitcoin exposure through shares traded on NYSE Arca. Under the proposal, Bitcoin holdings would be secured in cold storage by Foris DAX Trust Company, LLC (operating as Crypto.com), ensuring institutional-grade asset protection.
Daily net asset value (NAV) calculations will reference the CF Benchmarks Index, which aggregates pricing data from multiple cryptocurrency exchanges to ensure transparent and standardized valuation of the fund’s Bitcoin reserves.
If ultimately approved, the ETF could simplify Bitcoin investment for both retail and institutional investors by eliminating complexities associated with direct cryptocurrency ownership. Notably, the SEC’s current review scope excludes Ethereum-related components proposed in earlier iterations of the filing.
Approval of this ETF could establish a regulatory precedent for future cryptocurrency exchange-traded products, reflecting the SEC’s ongoing efforts to balance digital asset innovation with investor protection.