United States Securities and Exchange Commission has started its technical review of Trump Media’s proposal to list a crypto ETF. It seeks to launch a dual cryptocurrency ETF featuring both Bitcoin and Ethereum in a single product.
This new exchange-traded fund aims to give investors a chance to own digital currencies through shares on NYSE Arca. In its filing, 75% of holdings will remain in Bitcoin, and the remaining 25% will accommodate Ethereum.
The ETF will be sponsored by Yorkville America Digital, while Crypto.com’s Foris DAX Trust Company will act as the official custodian. Both Bitcoin and Ethereum will be stored in cold wallets alongside other company holdings for additional security.
The ETF’s net asset value will be calculated on a daily basis by using CME CF Bitcoin and Ether reference rates. Data will be received from key global exchanges, and as a result, fund performance can accurately be reviewed by using transparent data sources.
The actual S-1 filing for this crypto ETF had been submitted by Truth Social to the SEC on June 16 this year. This SEC acknowledgment now triggers a definitive timeline for ultimate approval or denial of this proposal.
SEC considers streamlined Crypto ETF approvals
The SEC is exploring a more routine approval system for ETFs as crypto-related fund demand increases. This could impact how soon future crypto ETFs become available to market in various segments.
The price of Ethereum can potentially be updated by its sponsor on special occasions without prior notice by a regulator. It gives fund managers a little freedom during periods of market variation, especially on busy network days.
As the SEC reviews Trump Media’s dual-asset ETF, it delayed a ruling on Fidelity’s spot Solana ETF request. Public comments can be filed for 21 days, and rebuttals can be received as late as 35 days after announcement.
Bloomberg ETF analyst James Seyffart wrote on X that approval of Solana ETF was always going to be behind schedule. He believes persistent updates and repeated re-filings are indicative of continued communication between issuers and authorities and not swift approvals.
Seyffart noted that while ultimate approvals had not been received, active intervention by the SEC indicates a gradual progression toward a holistic crypto ETF infrastructure. This includes more formal negotiations with ETF fund issuers that have intentions of launching digital asset funds.
