SEC delays decision on Truth Social crypto ETFs

The US Securities and Exchange Commission (SEC) has extended the review period for Donald Trump’s Truth Social-branded cryptocurrency exchange-traded funds (ETFs).

The decision deadline has been pushed back to 8 October 2025. The delay affects two proposed funds, one tracking Bitcoin ($BTC) and another covering both Bitcoin and Ethereum ($ETH).

It also marks the latest regulatory hurdle in what could become the most politically charged crypto investment product ever introduced to US markets.

The ETF proposals, submitted by Trump Media & Technology Group (TMTG), were originally filed earlier this year. The funds are set to be sponsored by Yorkville America Digital and custodied by Crypto.com.

They are part of a broader effort by Trump Media to appeal to politically conservative investors seeking digital assets under ideologically aligned branding.

Alongside the spot Bitcoin and Ethereum ETFs, TMTG also proposed a “Blue Chip” crypto fund that would track a basket of major tokens including Solana ($SOL), XRP ($XRP), and Cronos ($CRO).

The SEC’s announcement cited the need for “sufficient time to consider the proposed rule change and the issues raised therein” as the reason for the postponement. It also allows the regulator to gather public input and assess any potential legal conflicts under the Exchange Act.

However, the delay comes amid escalating political scrutiny of Donald Trump’s financial dealings in the crypto sector.

Critics argue that the former president has exploited regulatory reforms initiated during his administration to quietly build a vast crypto empire now estimated to be worth $1.2 billion.

Democrats on the House Financial Services Committee have voiced strong opposition to the ETFs, accusing Trump of manipulating the system for personal gain.

“He rewrote the rules, then cashed in on the chaos he helped create”, one committee statement alleged, pointing to deregulation efforts that coincided with the growth of Trump-linked digital ventures.

During his presidency, Trump supported pro-crypto policies, reduced oversight, and appointed regulators sympathetic to digital assets.

TMTG itself has emerged as a major institutional holder of Bitcoin. The company currently owns 18,430 BTC valued at approximately $2.1 billion, in addition to $300 million in options linked to the asset.

These crypto reserves account for roughly 40 percent of TMTG’s market capitalisation, making it the sixth-largest corporate holder of Bitcoin globally, placing it ahead of high-profile firms like Tesla and Coinbase.

Trump’s digital asset ventures stir conflict of interest concerns

The ETF filings are only one part of Trump’s growing involvement in crypto. His activities span a complex network of digital asset ventures that have produced hundreds of millions in revenue. 

One of the largest initiatives, World Liberty Financial – co-founded with his sons – has reportedly generated $390 million in personal income for the president. 

Another lucrative project, the $TRUMP memecoin, has delivered an estimated $315 million through licensing and alleged price manipulation practices.

Trump also holds over $430 million across various personal crypto wallets and has earned around $6.6 million from non-fungible token (NFT) collections.

These NFTs depict Trump in stylised forms – ranging from superhero costumes to musical personas – and have been widely circulated across conservative online platforms. 

According to recent disclosures, Trump’s digital asset portfolio now exceeds the value of his real estate holdings.

Observers have flagged the timeline of his crypto accumulation, noting how it overlaps with key policy changes made during his administration.

These include the appointment of pro-crypto figures to senior SEC positions, the introduction of a strategic Bitcoin reserve programme, and the signing of the GENIUS Act, which aimed to position the US as a leader in blockchain innovation.

Trump also granted a controversial pardon to Ross Ulbricht, founder of the dark web marketplace Silk Road, further signalling his administration’s permissive stance on crypto-related matters.

Just last month, Trump’s team released a 166-page roadmap outlining a national strategy for digital asset leadership. The document lays out objectives for crypto integration, innovation, and federal adoption. 

Notably, roughly 20 percent of current senior officials within Trump’s circle are said to hold personal crypto investments. These include Vice President JD Vance and seven Cabinet members whose collective holdings surpass $2 million. 

This level of exposure has prompted concerns about the impartiality of emerging crypto policy, especially in the context of ETF approvals and reserve currency initiatives.

Trump’s presence on Truth Social continues to influence market behaviour. In March, a single post referencing crypto reserve strategies triggered a significant rally across digital assets. 

Analysts say such incidents show the growing link between political sentiment and cryptocurrency pricing – a trend amplified by Trump’s high-profile persona and direct social media influence.

XRP, Ethereum and other ETFs also face SEC delays

The Truth Social ETF isn’t the only proposal affected by the SEC’s latest batch of delays. On 18 August, the Commission issued a series of extension notices for a number of high-profile crypto ETFs. 

These included five funds tied to Ripple’s XRP token, as well as new proposals for Litecoin ($LTC) and a staking-enabled Ethereum ETF. All decisions have now been pushed back to October.

Among the postponed filings is the 21Shares Core XRP Trust, which has a new decision deadline of 19 October. 

CoinShares’ proposed XRP ETF, intended for the Nasdaq Stock Market, has been delayed until 23 October, as has the Canary XRP Trust and Grayscale’s XRP Trust. 

In addition, the 21Shares Core Ethereum ETF, which includes provisions for staking, is now also on hold until 23 October.

According to the SEC, these delays are intended to provide additional time for evaluating technical details, legal compliance, and public response. 

“The Commission finds it appropriate to designate a longer period… so that it has sufficient time to consider the proposed rule change and the issues raised therein”, one filing noted. 

The regulator has followed a consistent pattern of utilising its full 270-day review window for crypto ETF proposals since approving spot Bitcoin and Ethereum ETFs last year.

The wider market has reacted with mixed signals. While the SEC’s delays are broadly seen as procedural, uncertainty has affected investor sentiment. 

For instance, prediction market Polymarket now places the likelihood of an XRP ETF approval by year-end at 77 percent – down slightly from 77.6 percent the day before. 

The odds for a Litecoin ETF dropped to 79 percent from 82 percent, reflecting broader caution among retail traders and institutional players alike.

Meanwhile, Ethereum ETFs have seen notable shifts in capital movement. On 12 August, spot Ethereum funds recorded nearly $200 million in outflows, the second-largest single-day total since launch. 

BlackRock’s ETHA alone saw $87 million leave, while Fidelity posted $79 million in redemptions. These outflows followed a record-breaking week of inflows totalling $3.7 billion over eight trading days, suggesting a reversal in investor appetite.

Compounding this volatility is a historic rise in Ethereum unstaking activity. As of 19 August, over 910,000 ETH, valued at $3.9 billion, were waiting to exit staking pools. The validator queue now requires over 15 days to process withdrawals, raising fears of a broader exodus. 

Bitcoin advocate, Samson Mow, commented on the development, saying, “The flippening will never happen but the unstakening is coming”. At the time of writing, Ethereum had slipped to 0.036 BTC in trading value, down from earlier levels.

Despite the turbulence, Ether ETFs have started gaining ground on their Bitcoin counterparts. According to analyst Hildobby at Dragonfly, the proportion of total ETH supply held in ETFs has risen to 5 percent, compared to 6.4 percent for Bitcoin. 

If this growth continues, Ethereum ETFs may surpass Bitcoin ETFs in terms of total asset share by September.

Google Trends data also points to renewed public interest in digital assets. On 14 August, Bitcoin search volume hit its highest level in over a month. 

Ethereum searches peaked in countries like Turkey and Argentina, while XRP saw a surge in Japan and South Korea. El Salvador, Brazil, and Vietnam led in global Bitcoin search queries.