Truth Social, the social media arm of Trump Media and Technology Group Corp., has filed for an S-1 registration with the Securities and Exchange Commission for the Truth Social Bitcoin ETF. Bloomberg analyst Eric Balchunas highlights a unique risk cited in this ETF, as Donald Trump’s influence could introduce political factors. As of now, the Bitcoin price is continuing its correction, with a 1.26% intraday loss, to hit $103,446. Will the ETF approval trigger a bullish recovery?
Analyst Highlights Trump’s Role in Bitcoin ETF Risk Section
On Thursday, June 5th, Truth Social filed an S-1 registration with the U.S. SEC, under the Securities Act of 1933, officially beginning the regulatory review process. The ETF aims to provide retail and institutional investors with regulated exposure to Bitcoin, eliminating the need to hold the asset directly.
The filing comes two days after NYSE Arca lodged a companion Form 19b-4 seeking exchange approval to trade shares of the proposed fund. Crypto.com will be the ETF’s Bitcoin custodian, prime execution agent, and liquidity provider, while Yorkville America Digital acts as the sponsor of the proposed fund.
In a recent tweet, Bloomberg analyst Eric Balchunas commented on a unique aspect of Truth Social’s bitcoin ETF filing. He accentuated President Donald Trump’s action under the “risk section, citing the potential effect of his pro-crypto push. This marks a historic shift where political factors are seen as central to cryptocurrency’s regulatory future.
If approved, the combination of regulatory clarity and political backing could make the ETF more appealing to institutions.
BTC Hints Prolonged Correction Amid Reversal Pattern
Despite the S-1 filing, the Bitcoin price prolonged its correction and plunged 1.5% during Wednesday’s U.S. market session, reaching $103,413. An analysis of the 4-hour chart reveals that the falling price has breached the neckline support of a bearish reversal pattern known as a head and shoulders.
The chart setup displays three peaks: the middle head and two short shoulders surrounding it. If the 4-hour candle closes below the neckline support, the selling pressure will accelerate. The post-breakdown fall could push the asset another 8.5% to hit $94,000.
Even if the downtrend materializes, the coin price will be placed above the 50% Fibonacci retracement level, indicating the buyers could counterattack with renewed bullish momentum.
Also Read: Ethereum On-Chain Metrics Signal Weak Sell Zones— Is $3,000 Breakout Imminent?
