SEC Delays Truth Social Bitcoin ETF, Invites Public Comments
The U.S. SEC has postponed its decision on the Truth Social Bitcoin ETF application filed by NYSE Arca for Trump Media. The review period now extends to October 8. The SEC also opened a public comment window on Rule 8.201-E, under which the fund would hold bitcoin directly. Trump Media has proposed two more crypto ETF products: a Blue Chip ETF including BTC, ETH, SOL, CRO and XRP, and a combined BTC & ETH fund. This delay comes amid over 92 pending crypto ETF filings, from Franklin Templeton’s SOL and XRP ETFs to BlackRock’s iShares ETH Trust, 21Shares’ SOL & XRP funds, WisdomTree’s XRP ETF, Grayscale’s HBAR Trust and Bitwise’s DOGE ETF. Cboe BZX and NYSE Arca also seek streamlined ETF listings via automatic approval. With new SEC Chair Paul Atkins expected to unveil a generic listing framework in October, traders are eyeing potential approvals for altcoin ETFs next month.
Neutral
Short-term, the delay on the Truth Social Bitcoin ETF and extended review reflects a cautious SEC stance, increasing uncertainty for traders and weighing on immediate crypto ETF sentiment. However, the opening of a public comment period and the prospect of new listing rules under Chair Paul Atkins support a constructive long-term outlook. The expected generic framework in October could unlock approvals for altcoin ETFs, offsetting short-term concerns and keeping market expectations broadly balanced.