Trump’s Bold Move Rattles Crypto Waters

In a move that could reshape the landscape of cryptocurrency investments, the New York Stock Exchange (NYSE) has advanced a pivotal proposal to the U.S. Securities and Exchange Commission (SEC). On June 24, 2025, the proposal sought regulatory approval to list a Bitcoin and Ethereum Exchange-Traded Fund (ETF) under the banner of Truth Social, primarily owned by Donald Trump. This fund aims to track the performance of Bitcoin and Ethereum, initially allocating a 3:1 ratio of Ethereum to Bitcoin. Yorkville America Digital has taken on the sponsorship role, while Foris DAX Trust Company is responsible for custodial duties.

This latest ETF initiative from Truth Social builds on an earlier application that was limited to Bitcoin. By introducing Ethereum into the mix, the company is expanding its crypto investment options. The established 3:1 Ethereum to Bitcoin ratio is crafted to manage price fluctuations, creating a diversified product that gives investors access to both major cryptocurrencies. Yorkville America Digital is committed to absorbing operational costs except for the management fee to ensure the fund’s passive nature.

In recent developments, Trump Media unveiled a strategy to form a “Bitcoin treasury” following a hefty $2.32 billion private equity sale. Moreover, the company announced potential share buybacks of up to $400 million. Such financial maneuvers signify Truth Social’s ambition to evolve beyond its political roots and position itself as a formidable player in the cryptocurrency finance sector.

How Long Will the SEC Take to Decide?

The SEC typically has 45 days to reach a decision once a 19b-4 form is filed, marking the culmination of a two-step process for ETF applications. With the S-1 prospectus having already been submitted, observers anticipate a preliminary response from the SEC by late July.

If granted approval, the ETF will trade on the NYSE Arca’s spot market, where Foris DAX Trust Company will directly manage the custody of both Bitcoin and Ethereum assets. With Trump’s involvement, the proposal may bring heightened attention to how cryptocurrency policies intersect with political dynamics in Washington, potentially igniting further discourse within the industry.

Key considerations from these developments include:

– The strategic introduction of a 3:1 Ethereum to Bitcoin ratio to curb volatility.
– Yorkville America Digital’s role in mitigating costs, emphasizing a passive fund structure.
– Truth Social’s transformation from a political entity to a crypto finance contender.

The introduction of Trump’s ETF proposal could spur broader discussions about regulations, political influences, and the future trajectory of cryptocurrency investment on established financial platforms. As the SEC deliberates, stakeholders within the crypto community and beyond are poised for potential shifts in the market.