The SEC accepts the Bitcoin and Ethereum ETF applications from Trump Media Company, marking a deep integration of Crypto Assets and politics.

The U.S. Securities and Exchange Commission (SEC) has recently officially accepted the Bitcoin and Ethereum exchange-traded fund (ETF) application from Trump Media, formally starting the clock for the agency to approve or deny the proposed fund. This application is not only a significant advancement for the crypto assets market but also marks the deep integration of crypto assets with U.S. politics. The ETF proposes to provide investors with exposure to Bitcoin (BTC) and Ethereum (ETH) through stocks listed on the New York Stock Exchange Arca, backed by crypto assets, with 75% allocated to Bitcoin and 25% allocated to Ethereum.

1. Details and Market Impact of Truth Social Encryption ETF

Fund Structure and Custody: According to the application documents, the ETF will be custodied by Foris DAX Trust Company, with asset management company Yorkville America Digital serving as the fund sponsor. Truth Social proposes that the net asset value of its ETF will be assessed daily, with the Bitcoin portion based on the CME CF Bitcoin Reference Rate, and the Ethereum portion using the CME CF Ethereum Reference Rate. The crypto custodian will also hold the fund's Bitcoin and Ethereum in accounts separate from its other client base, and will keep the private keys in cold storage. Truth Social first submitted the S-1 form for its dual crypto ETF to the SEC on June 16.

The Significance for Trump Media: The launch of multiple ETFs focused on Crypto Assets may spark strong interest in Trump Media stocks and make them a more attractive option for crypto investors. However, given the various Crypto Assets ETFs available in the market, how much interest these funds can attract from investors remains a question, largely depending on the competitiveness of their fees.

Unfortunately, this is unlikely to significantly improve the company's financial situation. High costs are a necessary condition for achieving strong profits, and this may ultimately deter investors. The biggest problem facing Trump Media is that, despite the company's expansion into different areas such as streaming media and financial services, it remains a business with extremely low profit margins and is burning cash. In the past 12 months, Trump Media's revenue was only $3.7 million, with total losses reaching $105 million. This cryptocurrency strategy could make Trump Media's stock overall a more volatile and speculative investment. It has the potential to rise with the general bullish sentiment around Bitcoin and the entire cryptocurrency market, but based on its own fundamentals, it is unlikely to attract too many growth-oriented investors.

II. Positive Signals from the SEC Regarding Crypto ETF and Delay of Solana ETF

This application is made against the backdrop of a surge in other crypto ETF applications. Reportedly, the SEC is exploring a streamlined listing structure for crypto ETFs that would automate a significant portion of the approval process.

At the same time, the SEC has delayed its decision on Fidelity's proposed spot Solana (SOL) ETF, opening a new public comment period and requesting responses within 21 days and rebuttals within 35 days. The Cboe BZX Exchange in the United States first requested approval for the proposed Fidelity ETF holding Solana in its application on March 25. Bloomberg ETF analyst James Seyffart stated in a post on X on Monday that this is "the expected delay" and added, "We are still waiting for some action from the SEC regarding the general digital asset ETP framework."

In another X post on Monday, Seyffart stated that reports suggest the SEC has asked the SOL spot ETF issuers to amend and resubmit their application by the end of the month, which is another positive signal for the potential new crypto exchange-traded product "SEC action." He emphasized, "Please remember, this is just more amendments and more back-and-forth communication, not an approval, as I have seen some people imply. Any form of interaction between the SEC and the issuers/exchanges should be viewed positively."

3. The Trump Administration's Encryption Agenda and the Future of Bitcoin

Two significant developments are expected in July that could impact the future of Bitcoin in the United States—both developments are related to President Trump's administration and its expanding crypto agenda.

On July 7, the U.S. Securities and Exchange Commission (SEC) officially acknowledged the application for the listing and trading of the Truth Social Bitcoin and Ethereum ETF on the New York Stock Exchange Arca. The fund is named after President Trump's social media platform and is submitted under the SEC’s 8.201-E rule regarding commodity trust shares. Although this move has not yet been approved, it marks an important step forward and opens a consultation period to allow the public and institutions to provide feedback before final approval.

Just a few hours ago, another significant signal emerged. According to Crypto In America, the Trump administration is preparing to release a comprehensive Bitcoin and digital asset policy document around July 22. White House sources say that the document may include recommendations for creating a strategic Bitcoin reserve—potentially emulating El Salvador's model on a larger scale. Additionally, the document may contain proposals aimed at ensuring that Crypto Assets companies receive fair banking services through the Federal Reserve's infrastructure. The Federal Reserve has long been criticized for resisting such integration.

IV. Bitcoin Price Response to These Developments

The market may react in various ways based on the specific content of the policy and the progress of the ETF. If the report on July 22 confirms support for establishing a national Bitcoin reserve, it could spark institutional optimism and drive up prices—especially in the case of federal government support or the Federal Reserve integrating encryption services. The momentum of the Truth Social ETF may also enhance bullish sentiment, particularly among retail investors supporting Trump's initiatives.

However, delays, ambiguous policy wording, or opposition from regulatory agencies can trigger uncertainty. If any of these fail to meet expectations, traders may take profits or reduce exposure in the short term. Overall, the coming weeks represent a crucial window for Bitcoin's political and market positioning in the United States and the potential next price movements.

Conclusion:

The SEC has accepted the Bitcoin and Ether ETF applications from Trump Media Company, and the upcoming crypto assets policy document from the Trump administration signals that crypto assets will play an increasingly important role in the political and financial landscape of the United States. This not only provides new opportunities for the compliance and mainstreaming of crypto assets but will also test the market's reaction to political dynamics.