Trump Media and Technology Group, the majority company belonging to the majority by American president Donald Trump who manages his social media platform Truth, filed with the Securities and Exchange Commission (SEC) of the United States to launch a negotiated fund in exchange for Bitcoin (ETF).
TMTG filed an initial recording declaration on the S-1 form for Son ETF Truth Social Bitcoin (BTC) on June 5, according to an advertisement of the company. The file is read as follows:
“The assets of the trust are mainly composed of Bitcoin held by a goalkeeper in the name of the trust. The trust generally seeks to reflect the performance of the Bitcoin price. ”
The file comes after the Nyse Arca scholarship submitted a proposal to the dry to register the social fet Bitcoin Truth Social on behalf of the Director of assets Crypto, Yorkville America Digital, partner of TMTG, the owner of TRUTH Social.
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ETF configuration
If it is approved, the FNB Truth Social Bitcoin will see the exchange of crypto.com cryptocurrency.com act as its exclusive goalkeeper, its first-rate execution agent and its liquidity supplier. ETF is part of an increasing number of cryptographic products looking for regulatory approval in the United States.
The new fund offers exclusivity clauses. According to the file, Crypto.com will offer certain services exclusively to confidence behind the product. Product costs are still to be determined.
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Before? Yes please
The deposit also reserves the right for the sponsor of ETF to head transactions. The document can be read as follows:
“Potential shareholders must be aware that these people can take positions in Bitcoin who are opposed or ahead of the positions taken for the trust. There is no guarantee that one of the previous ones will have no negative effect on the performance of the trust. ”
While many Bitcoin ETF deposits recognize conflicts of potential interests, they generally include measures to mitigate these conflicts.
In the case of a fork, FNB holders will not be entitled to the corresponding assets either. As explained, “the sponsor will result in the abandonment of the trust permanently and irrevocably accessory rights”.
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