The U.S. Securities and Exchange Commission (SEC) has extended the review period, which it has to either approve the Truth Social Bitcoin and Ethereum ETF. This further delays the potential launch of one of the few funds that can provide investors with spot exposure to BTC and ETH in one wrapper.
SEC Postpones Decision On Truth Social’s Bitcoin and Ethereum ETF
The SEC revealed that it is extending the 45-day period to review NYSE Arca’s filing to list and trade shares of the Truth Social Bitcoin and Ethereum ETF. The 45-day deadline was set for August 24.
However, with this decision, the commission now has until October 8 to decide whether or not to approve the fund. The Division of Trading and Markets stated that the agency finds it appropriate to designate a longer period within which to take action on the proposed rule change.
By October 8, the SEC will have to determine whether to approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change to list and trade shares of the Truth Social Bitcoin and Ethereum ETF.
As CoinGape reported, Donald Trump’s company filed to offer this fund in June. Shortly after, the NYSE Arca filed the 19b-4 to list and trade shares of the fund, which kicked off the review process.
The Truth Social Bitcoin and Ethereum ETF will hold a split allocation of 75% in Bitcoin and 25% in Ethereum. That way, investors will be able to gain exposure to the two largest cryptos by market cap in one wrapper. Besides this fund, the company had also filed for a Bitcoin ETF and a ‘Blue Chip Crypto ETF’, which will hold BTC, ETH, SOL, XRP, and CRO.
It is worth noting that Truth Social’s Bitcoin and Ethereum ETF won’t be the first to provide investors with exposure to both BTC and ETH. The SEC already approved a similar fund for Hashdex and Franklin Templeton.
Arguments Against The Launch Of The Dual ETF
Accountable.US provided a comment on NYSE Arca’s filing, urging the SEC to deny the approval of the proposed rule change to list and trade shares of the Truth Social Bitcoin and Ethereum ETF. The advocacy organization argued that the proposed rule change “is rife with political, personal, and business conflicts of interest with the president’s company.”
Therefore, the group declared that approval would call into question the SEC’s independence and its commitment to ethics and fair play. Accountable.US noted that the country is in an unprecedented era, with Trump being a majority shareholder in a company that is entering numerous deals.
The organization further claimed that approving the rule change, especially one with such risks to the investing public and one that would benefit Trump’s company directly, would bring into question the SEC’s integrity. They added that it may appear to the public that the commission is simply granting Trump favors.
Boluwatife Adeyemi
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Source: https://coingape.com/sec-delays-decision-on-trumps-truth-social-bitcoin-and-ethereum-etf/