Donald Trump’s Truth Social Advances with Bitcoin ETF S-1 Filing

Truth Social, a social media company linked to President Donald Trump, is boldly moving towards crypto investment. The company has filed a critical S-1 form with the U.S. Securities and Exchange Commission (SEC). 

This filing, announced on June 5, aims to launch a Bitcoin Exchange-Traded Fund (ETF). Truth Social wants to offer investors a new, regulated way to invest in Bitcoin (BTC) through a fund.

Truth Social Awaits SEC Approval

The filing reveals that Truth Social plans for its Bitcoin ETF to be supported mainly by real Bitcoin. A company named Foris DAX, which acts as the fund’s custodian, will keep these Bitcoins safe. 

Another company, Yorkville America, is the sponsor responsible for managing the ETF. However, the filing did not provide some key information, such as the ticker symbol, the amount of money that will start the fund, or the price for each share.

This SEC filing came after the New York Stock Exchange (NYSE) Arca submitted a related form called a 19b-4 on June 4. This is essential in getting permission to list and trade the ETF shares on the stock exchange. Now, regulators will review these applications to decide if they will approve the ETF.

Truth Social’s Bitcoin ETF Eyes Real BTC Backing

Truth Social’s Bitcoin ETF aims to closely follow the price of the flagship crypto. This fund will allow large investors, such as institutions, to invest in Bitcoin in a more traditional and regulated way without buying the digital coin directly.

This is similar to other Bitcoin ETFs that hold real Bitcoin, not just futures or contracts. Truth Social hopes this fund will attract investors who want to invest in Bitcoin but prefer the safety and ease of an investment fund product.

Truth Social’s ETF To Join A Competitive Market

Experts in the finance industry have noticed Truth Social’s move into the Bitcoin ETF space. In a recent post on X, Bloomberg analyst Eric Balchunas said this filing is unusual because it is linked to a company connected to a U.S. president. 

This connection gives the ETF a unique profile. However, Balchunas noted that Truth Social’s crypto fund will compete in a market already full of Bitcoin ETFs. 

Many of these existing ETFs have low fees and attract many investors, making it hard for Truth Social’s ETF to stand out, even with its unique political connection. This ETF filing comes as President Donald Trump’s involvement in cryptocurrency has faced criticism and controversy. This may further add some challenges to this new project.