NYSE Arca Moves to List Truth Social’s Dual Bitcoin-Ether ETF

NYSE Arca has recently filed a 19b-4 application with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of Truth Social’s dual-asset exchange-traded fund (ETF), B.T. 

Notably, as per the S-1 registration statement submitted by Truth Social on June 16, the fund would offer combined exposure to Bitcoin and Ethereum in a 3:1 allocation—75% in BTC and 25% in ETH. 

Crypto.com is named as both the custodian and liquidity provider, and Yorkville America Digital will sponsor the investment vehicle.

The June 24 filing by NYSE Arca outlines a new rule change under the amended Securities Exchange Act of 1934, aiming to list the ETF on the platform. 

If greenlit, the Truth Social ETF would join an already crowded digital asset ETF space. The SEC allowed trading of 11 spot Bitcoin ETFs in January 2024, which have since amassed $47.59 billion in assets. Data by SoSoValue further reveals that spot Ether ETFs, which were approved in July, have pulled in around $4.07 billion since their launch. 

Blurred Lines Between Finance and Politics

While the filing follows standard procedures, many analysts have voiced strong criticism about the proposal due to its political ties. 

Notably, the ETF is linked to Trump Media & Technology Group (TMTG), the parent company of Truth Social. Moreover, Yorkville, the ETF’s sponsor, is financially linked with Trump Media (including a $2.5 billion share purchase agreement), raising questions about fiduciary neutrality.

Bloomberg ETF analysts noted that the Truth Social brand might attract retail investors aligned politically, but it also risks becoming a “political gift” rather than a robust financial instrument. 

Critics argue that the political branding could compromise investor trust and market integrity, especially if the fund appears to benefit parties with existing financial ties.

Meanwhile, TMTG is expanding into the crypto space with its “America First” suite of blockchain-based financial products, in partnership with Yorkville. Planned offerings include a Bitcoin fund, a blockchain leaders fund, and a stablecoin income fund.

TMTG has also announced plans to raise $2.4 billion for its BTC treasury.

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