Breaking News: Trump’s Truth Social Unveils Bitcoin and Ethereum ETF
Archyde.com – Truth Social, the social network platform associated with Donald Trump, has made a significant move into the cryptocurrency market by presenting an ETF that combines Bitcoin and Ethereum to the United States Securities and Exchange Commission (SEC). This groundbreaking financial product, sponsored by Yorkville America Digital, will allow investors to access these cryptocurrencies through the New York Stock Exchange (NYSE).
ETF Details and Structure
The ETF, organized as a trust in Nevada, seeks to replicate the performance of Bitcoin and Ethereum in a fixed proportion of 3:1, with three parts of Bitcoin for every one part of Ethereum. Assets primarily consisting of these cryptocurrencies will be guarded by Foris Dax Trust Company, LLC, with prices determined according to the CME CF Bitcoin Reference Rate and CME CF Ether Reference Rate.
Initially, all transactions will be made in cash through a liquidity provider, with shares issued in blocks of 10,000 units, called “baskets,” accessible only for registered stock agents. The trust plans to request authorization for direct creation and redemption in Bitcoin and Ethereum in the future, simplifying access for investors and reducing operational costs.
Market Differentiation and Innovation
The ETF stands out by combining Bitcoin and Ethereum in a default proportion, offering diversification against single-asset ETFs like the ProShares Bitcoin Strategy ETF (BITO). The possibility of direct cryptocurrency transactions, pending regulatory approval, positions it as an innovative product, as most current ETFs rely on cash operations.
The choice of Foris Dax as custodian introduces a novelty, though it raises questions about its experience compared to established custodians. The Nevada structure could offer legal or fiscal benefits, differentiating from traditional ETFs based on Delaware or New York.
Risks and Regulatory Approval
The ETF leaflet warns about the risks associated with cryptocurrencies, including high volatility, lack of regulation, and exposure to cyber threats such as hacks or security failures. The launch of the ETF is subject to the final approval of the SEC, chaired by Paul Atkins, nominated by Trump on January 20, 2025.
Expanding Beyond Social Networks
Under the direction of Devin Nunes, former congressman, Trump Media is expanding its scope beyond social networks, venturing into decentralized finance (DeFi) and cryptocurrency management. This ETF represents a strategic step to diversify its operations, competing with traditional financial actors like BlackRock or Grayscale.
If approved, the ETF could attract investors interested in Bitcoin and Ethereum without the need to manage digital wallets or exchange platforms. Its combination of both assets makes it unique in a market dominated by single-cryptocurrency ETFs, while the potential for direct cryptocurrency transactions could expand its appeal.
Stay tuned to Archyde.com for the latest updates on this breaking news story and more insights into the ever-evolving world of cryptocurrencies and decentralized finance.
