Trump Media Group files for crypto ETF as U.S. SEC advances unified standards to streamline approval process
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Trump Media Group files for crypto ETF as U.S. SEC advances unified standards to streamline approval process
Rather than a policy-driven opportunity, it's more like betting on how long a crypto narrative backed by political support can last.
Navigating Web3 tides with focused insightsAuthor: ChandlerZ, Foresight News
Trump Media & Technology Group recently filed two S-1 registration statements with the U.S. SEC for cryptocurrency ETFs. The company’s Truth Social platform is advancing spot Bitcoin and Ethereum ETFs, as well as a composite "Crypto Blue Chip ETF" consisting of five major cryptocurrencies.
On July 2, according to a corporate announcement from Trump Media & Technology Group, initial S-1 registration statements were submitted to the U.S. Securities and Exchange Commission (SEC) for the Truth Social Bitcoin and Ethereum ETF. This ETF will directly hold Bitcoin and Ethereum, with 75% of assets invested in Bitcoin and 25% in Ethereum, issuing shares to investors. Designed to closely track the spot prices of both cryptocurrencies, the fund will take the form of an open-ended trust and intends to list on the New York Stock Exchange.
Then on July 8, the group filed another S-1 document applying for the “Truth Social Crypto Blue Chip ETF.” The assets of the Truth Social Crypto Blue Chip ETF Trust will primarily include Bitcoin, Ethereum, Solana (SOL), Ripple (XRP), and Cronos (CRO), held by a custodian on behalf of the trust. According to the trust agreement, the initial allocation percentages are expected to be approximately 70% Bitcoin, 15% Ethereum, 8% SOL, 5% CRO, and 2% XRP.
Both applications are currently in the early stages of SEC review, covering only high-market-cap mainstream cryptocurrencies. The market is now watching whether the SEC will soften its stance toward multi-asset crypto ETFs following its prior approvals of Bitcoin and Ethereum spot ETFs. Truth Social's proposed asset distribution appears relatively conservative, potentially offering greater adaptability under current regulatory trends.
SEC Exploring Unified Listing Standards for Crypto ETFs
Meanwhile, the U.S. SEC is discussing a common listing standard for crypto ETFs with major exchanges. According to The Block, exchanges hope to obtain a clearly recognized framework that would allow them to bypass the lengthy 19b-4 approval process. Under the current mechanism, each crypto ETF requires individual case-by-case review, with maximum processing times reaching up to 240 days. Exchanges are advocating for a streamlined approach where qualifying ETFs meeting predefined criteria could be listed directly without requiring separate SEC votes.
The standard under discussion includes quantitative metrics such as market capitalization, liquidity, and network decentralization. While these talks remain in early stages, some officials within the SEC believe the mechanism could begin testing before this fall. This move is seen as a way to simplify the application process, shorten time-to-market, and increase transparency. Bloomberg analyst James Seyffart said that once standards are established, the market may see a wave of concentrated filings for crypto ETFs, potentially leading to swift approvals for assets including Solana, XRP, and Dogecoin.
Truth Social’s entry comes at this transitional moment. Its product filings emphasize no technological innovations nor complex derivatives. Both ETFs adopt the traditional open-ended trust structure, similar to already-approved Bitcoin spot ETFs. The key difference lies in the blue chip ETF’s inclusion of additional coins and their weighted allocations. In the absence of a unified review framework, it remains unclear whether this fund will be considered a "qualified product."
Motivations Behind Political Statements and Market Conditions
Since the Trump administration took office, public statements regarding cryptocurrencies have noticeably increased. In March, Trump posted on Truth Social stating, “A U.S. cryptocurrency reserve will elevate this critical industry, which has suffered years of corrupt attacks under the Biden administration. That’s why my executive order on digital assets directs a presidential working group to advance a strategic reserve including XRP, SOL, and ADA. I will ensure America becomes the world capital of cryptocurrency. We are making America great again!”
Later disclosures revealed that the executive order signed by Trump includes two components: a strategic reserve and an inventory. The strategic reserve will contain only BTC—the digital asset with the largest value storage—using approximately 200,000 tokens the government has accumulated over the years through criminal and civil forfeitures. The second component is a broader digital asset reserve comprising non-Bitcoin assets such as XRP, ADA, ETH, and SOL, possibly including others. The main distinction is that the government will not actively seek to acquire more inventory assets. It will only explore purchasing BTC using government funds if a budget-neutral method can be found. The Treasury Secretary may determine responsible management strategies, including potential sales from the U.S. digital asset inventory. These details have sparked external interest in the direction of his policy.
In May, Politico reported that Trump’s earlier Truth Social post supporting inclusion of XRP, SOL, and ADA into the strategic reserve was actually driven by lobbying firm Ballard Partners, and that Trump himself was unaware. The involved lobbyists were subsequently "expelled" from the White House. Three知情人士said that minutes after the president's post, David Sacks, the White House "crypto czar," became furious and called Wells to complain. After the crypto-related posts came to light, Ballard was temporarily excluded from the White House, with staff instructed not to meet with him. However, five people close to Trump indicated that dissatisfaction with Ballard went beyond this incident. Some White House officials believed Ballard was exploiting Trump’s name for profit, exaggerating his closeness to the president and Wells. The White House declined to comment.
Despite the controversy, Trump has repeatedly reaffirmed in various settings that the crypto industry is a key area for future growth. According to a Deutsche Bank survey conducted in June, American consumers represent the largest user base for cryptocurrencies, primarily composed of men, younger individuals, and wealthier demographics. In May, U.S. crypto adoption reached 17%, higher than the UK’s 11% and the EU’s 10%. Among Americans aged 18–34, adoption rose from 24% in January to 29% in June. Analysts attribute this rise largely to optimistic sentiment about Trump’s pro-crypto policy outlook. Among U.S. respondents, affluent individuals accounted for 32% of crypto adopters. Additionally, 23% of American men reported using cryptocurrencies for payments or personal investments, compared to 13% of women. Male consumers generally perceive themselves as having deeper understanding of crypto than women.
Truth Social’s timing in filing ETF applications is difficult to separate from the political environment. While the compliance and business logic of these products still require scrutiny, their symbolic political significance is already evident. As both a platform and product vehicle, Truth Social holds room for further commercialization. However, some market voices remain cautious about the actual impact of these products. About 30% of the blue chip ETF’s assets come from tokens other than Bitcoin, whose liquidity and market stability are comparatively limited. Particularly CRO and XRP, which face significant price volatility and regulatory controversies, remain contentious choices as underlying assets for publicly traded funds. The SEC maintains strict requirements on asset safety, custody arrangements, and valuation mechanisms when reviewing spot ETFs.
Investors are also assessing whether these products can sustain long-term appeal. There are already over 10 Bitcoin spot ETFs trading in the market, most controlled by major asset managers. Truth Social lacks experience in financial operations, making market share acquisition a real challenge. Furthermore, operational elements such as fee structure, liquidity provision, and market maker partnerships remain undefined, potentially affecting market performance.
A Window Between Regulatory Advancement and Market Expansion
When deciding whether to approve these new ETF products, the U.S. SEC must balance political pressure against growing market demand for broader product offerings. If the exchange-proposed unified standard gains traction, it could fundamentally reshape the ETF listing pathway and open doors for many more products. But until such standards are formally implemented, every new application still faces complex compliance evaluations, leaving room for delays or even rejections.
Truth Social’s two ETF applications remain under review, with considerable time likely before final decisions. The SEC continues to exercise caution in reviewing multi-asset ETFs, so swift approval in the short term remains uncertain. Yet this round of filings coincides with ongoing discussions around universal listing standards, reflecting how crypto ETFs are moving beyond pilot projects into a broader product phase. Once the regulatory path becomes clear, competition in the market is set to intensify rapidly.
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