Trump Media & Technology Group (TMTG), the parent company of Truth Social, has taken a significant step toward launching a spot Bitcoin ETF. The firm filed an amended S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), outlining plans for the Truth Social Bitcoin ETF under the ticker symbol “B.T.”
This development aims to provide investors with direct exposure to Bitcoin, aligning with growing mainstream adoption of cryptocurrencies. The ETF is structured as a Nevada business trust and will hold Bitcoin directly as its primary asset, rather than relying on futures or derivatives.
This passive fund seeks to track Bitcoin’s price performance, minus fees and expenses. Shares are set to list on NYSE Arca, with creations and redemptions in blocks of 10,000 shares, initially through cash orders. The filing notes potential future shifts to in-kind transactions if approved.
A key highlight is the partnership with Crypto.com. Foris DAX Trust Company, LLC, an affiliate of Crypto.com, will serve as the exclusive Bitcoin custodian. This ensures secure storage in segregated cold wallets, with private keys kept offline to mitigate risks like hacks.
Another affiliate, Foris DAX, Inc., acts as the prime execution agent and sole liquidity provider, handling trades on connected venues. The custodian provides $120 million in insurance coverage, though it may not cover all potential losses such as insolvencies.
Yorkville America Digital, LLC, a subsidiary of Yorkville America, LLC, is the sponsor overseeing operations, including net asset value (NAV) calculations and expense management. The sponsor has discretion over fee adjustments and handling Bitcoin network events like forks.
The fund will not invest in other cryptocurrencies or diversified assets, which could increase volatility. Over time, Bitcoin per share may decrease due to sales covering the sponsor’s fees.
This amended filing builds on TMTG’s efforts to integrate crypto into its platform. Truth Social, known for its free-speech focus, could attract new users and investors through this ETF. The move comes amid a surge in spot Bitcoin ETF approvals, potentially expediting SEC review. If launched, it might draw significant inflows, boosting Bitcoin’s institutional appeal.
