Key Highlights:
- Truth Social has amended its Bitcoin Spot ETF filing but has left investors guessing in the fee and the ticker.
- Crypto.com is confirmed as the custodian, while Yorkville America Digital will sponsor the fund.
- The ETF aims for NYSE Arca listing in 2025, pending SEC approval.
The race to launch new U.S. Bitcoin spot ETFs has gained attention this week as Trump Media and Technology Group, the owner of Truth Social, filed an amendment to its proposed Truth Social Bitcoin Spot ETF with the U.S. Securities and Exchange Commission (SEC) as per Eric Balchunas, a well-known ETF analyst at Bloomberg.
As per the X (formerly known as Twitter) post by the Bloomberg analyst, the filing has been listed as Amendment No.1 to form S-1 which states that Yorkville America Digital, LLC will be sponsoring the ETF, and Crypto.com will serve as the custodian for the fund’s Bitcoin. The ETF will be directly holding Bitcoin, not futures or its derivatives. This move will make it a true spot ETF. However, major details such as the management fees and ticker symbol, were not disclosed and this is catching the eyes of the market watchers.
The ETF, if approved, will be listed on the NYSE Arca. With this ETF, the main aim is to give investors direct exposure to Bitcoin’s price without having to handle the private keys or manage the crypto wallets.
Both the fee structure and ticker, important for any investor or trader, remains undisclosed. Omitting the management fees is usually common in early ETF filings, as fees are a major point of competition, especially in crypto funds. The missing ticker has also given rise to speculations about the ticker the company might choose. Many of the crypto community members expect a short memorable code which could be linked to ‘Truth” or “Bitcoin.” Some had guessed it might be “B.T,” but that was not included in this amendment according to Balchunas.
Confirmed Details
The shared image in the X post confirms the following data:
- Custodian Confirmation: The update has named Crypto.com as their official Bitcoin custodian. In ETFs, custodians are responsible for securing the asset as per the regulatory guidelines. It is advised to choose a global exchange as it could increase investor trust.
- Clearer Product Structure: The filing now makes it clear that the ETF will hold the actual Bitcoin and not cash-settled futures or derivatives. This puts it in line with other spot Bitcoin ETFs that give 1:1 price exposure.
- Listing Venue: The product will be listed on NYSE Arca, one of the leading exchanges for U.S. listed ETFs, pending regulatory clearance.
Why Does This Matter?
ETF sponsors, usually, reveal fees only when the ETF is about to be approved. In this way, the company can keep the prices flexible and compete with their rivals such as BlackRock and Fidelity. Truth Social’s ETF is expected to follow the same suit.
The missing ticker will also slow down the market makers and brokers, as it’s essential for quotes, marketing, and trading setup. The ETF cannot launch or be promoted until these details are set and confirmed.
Next Steps
The SEC will review the documents and the filings and then approve both the amended Form S-1 and the accompanying exchange rule change request (19b-4). If successful, the listing on NYSE Arca could happen within months, and this will make Truth Social as one of the newest players in the Bitcoin ETF market.
Also Read: Harvard Holds $116 Million in BlackRock’s Bitcoin ETF (IBIT)