SEC Delays Decision on Truth Social's Bitcoin ETF

Truth Social, the social media platform associated with former U.S. President Donald Trump, has officially joined the competition for cryptocurrency ETFs by filing for a Bitcoin spot ETF with the U.S. Securities and Exchange Commission (SEC) in June 2025. However, this ambition is currently “on hold,” as the SEC has postponed its review until September 18, 2025.

Truth Social is not the only entity facing delays. The SEC is also carefully examining altcoin ETF proposals from major players such as Bitwise (Dogecoin), Grayscale (Hedera Trust, Solana Trust), VanEck (Avalanche), and Canary Capital (Litecoin). Why is the SEC being so cautious?

Key Reasons for SEC’s Caution:

Staking Issues: Particularly with funds based on Solana, staking could introduce complex legal risks that the SEC must consider carefully.
In-Kind Redemption Mechanism: Although the process of exchanging ETFs for underlying cryptocurrency assets sounds straightforward, it poses compliance challenges that the SEC aims to avoid.

On July 23, 2025, a consortium of financial giants, including 21Shares, Fidelity, Franklin Templeton, Galaxy, VanEck, and WisdomTree, submitted amendments to their Bitcoin and Ethereum ETF filings, requesting the activation of the in-kind redemption mechanism. This move is seen as a final effort to persuade the SEC, as the entire industry awaits the outcome.

Under former SEC Chairman Gary Gensler, Bitcoin spot ETFs were approved beginning in early 2024, attracting a massive influx of $55 billion. However, his successor, Paul Atkins, has adopted a more cautious stance, especially regarding politically charged or highly speculative funds like those from Truth Social.

Truth Social is not stopping at a Bitcoin ETF; it is building an ambitious cryptocurrency ecosystem:

Crypto Blue Chip ETF: A “dream team” portfolio with allocations of:
- 70% Bitcoin: The king of cryptocurrencies.
- 15% Ethereum: The prince of DeFi.
- 8% Solana: Known for its high transaction speeds.
- 5% Cronos: A representative from Crypto.com.
- 2% Ripple: A specialist in international payments.
Mixed Bitcoin-Ethereum ETF: A unique product combining the strengths of two giants, offering a balance of stability and growth potential.
Massive Bitcoin Treasury: The SEC has approved a plan to raise $2.5 billion, paving the way for Truth Social to accumulate Bitcoin on a large scale.
Alliance with Crypto.com: Developing “Made in America” ETFs that combine digital assets with traditional securities.
Upcoming Token Launch: To be integrated into a premium subscription package, creating a closed ecosystem for Truth Social users.

Truth Social’s entry into the crypto ETF space reflects its ambition to establish a significant presence in the evolving cryptocurrency landscape.

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