### Trump-Owned TMTG Files with SEC to Launch Bitcoin ETF

Trump Media and Technology Group (TMTG), the company primarily owned by former US President Donald Trump, is stepping into the cryptocurrency arena. TMTG submitted a filing to the US Securities and Exchange Commission (SEC) to introduce a Bitcoin exchange-traded fund (ETF), according to an announcement made by the company. The official filing, which occurred on June 5, outlines plans for the Truth Social Bitcoin (BTC) ETF.

“The assets of the Trust consist primarily of bitcoin held by a custodian on behalf of the Trust. The Trust seeks to reflect generally the performance of the price of Bitcoin,” the filing reads. This proposal has been brought forward to the SEC by NYSE Arca on behalf of Yorkville America Digital, a crypto asset manager and partner of TMTG.

Should the SEC grant approval, the Truth Social Bitcoin ETF will have cryptocurrency exchange Crypto.com serving as its exclusive custodian, primary execution agent, and liquidity provider. The ETF adds to a growing list of similar financial products seeking regulatory green light in the United States.

Notably, the new ETF will include exclusivity clauses. Crypto.com will provide certain services solely to the Trust, although specific product fees remain undetermined. The filing also indicates that the ETF's sponsor maintains the right to potentially front-run transactions. The document warns prospective shareholders that involved parties may take positions in Bitcoin that are in contrast to or ahead of those planned for the Trust, potentially impacting its performance.

Additionally, the ETF filing addresses the complex issue of handling blockchain forks. Holders of the ETF will not have rights to assets resulting from such forks. The filing explains, "the Sponsor will cause the Trust to permanently and irrevocably abandon the Incidental Rights."

While it is common for Bitcoin ETF filings to acknowledge potential conflicts of interest, they usually propose measures to mitigate these risks. TMTG’s filing highlights some areas where conflicts could arise, marking a critical point of discussion as the SEC reviews the proposal.