SEC Once Again Delays Decision on Truth Social Bitcoin and Ethereum ETF

The U.S. Securities and Exchange Commission (SEC) has once again extended its review period on the proposed Truth Social ETF, which would offer investors a unique package of exposure to both Bitcoin and Ethereum. The move means yet another delay for one of the few funds that would combine the two largest cryptocurrencies under one umbrella.

Decision Pushed to October The SEC announced on Friday that it is extending the 45-day deadline for reviewing NYSE Arca’s application to list and trade shares of the fund. Instead of the original August 24 deadline, the regulator now has until October 8 to decide whether to approve, reject, or open further proceedings to evaluate the proposal. According to the Division of Trading and Markets, the extension is necessary to allow “more time to evaluate the proposed rule change.” In practice, this means investors will have to wait longer for a final verdict.

Structure of the Fund The Truth Social Bitcoin & Ethereum ETF is designed with a split allocation — 75% in Bitcoin and 25% in Ethereum. This structure would allow investors to hold exposure to both cryptocurrencies through a single investment vehicle. This would not be the first attempt at a dual ETF. The SEC has already approved similar funds for Hashdex and Franklin Templeton. However, this particular proposal carries additional weight because it is directly tied to Donald Trump’s company, which filed the application in June.

Criticism and Concerns Over Conflicts of Interest The watchdog group Accountable.US has voiced strong opposition, claiming that the ETF is “loaded with political and business conflicts of interest” given Trump’s majority ownership in the company behind the application. According to the organization, approval could undermine the SEC’s credibility and raise concerns that the regulator is giving Trump’s business favorable treatment. “Approval could compromise the SEC’s perceived independence and send a message to the public that regulatory decisions are politically motivated,” the group stated.

What Comes Next The SEC now has until October 8 to make its decision. If approved, the fund could open the door for investors to easily gain exposure to both of the largest cryptocurrencies, potentially attracting significant capital inflows. However, if concerns over conflicts of interest prevail, the Truth Social ETF could collapse before it even gets off the ground.

#SEC , #TRUMP , #etf , #TruthSocial , #CryptoNews

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