Notice2025-18138

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To List and Trade Shares of the Truth Social Bitcoin ETF, B.T. Under NYSE Arca Rule 8.201-E, Commodity-Based Trust Shares

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
September 19, 2025

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 90 Issue 180 (Friday, September 19, 2025)</title>
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[Federal Register Volume 90, Number 180 (Friday, September 19, 2025)]
[Notices]
[Pages 45292-45293]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18138]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-103977; File No. SR-NYSEARCA-2025-40]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting 
Proceedings To Determine Whether To Approve or Disapprove a Proposed 
Rule Change To List and Trade Shares of the Truth Social Bitcoin ETF, 
B.T. Under NYSE Arca Rule 8.201-E, Commodity-Based Trust Shares

September 16, 2025.

I. Introduction

    On June 3, 2025, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
list and trade shares (``Shares'') of the Truth Social Bitcoin ETF, 
B.T. (``Trust'') under NYSE Arca Rule 8.201-E, Commodity-Based Trust 
Shares. The proposed rule change was published for comment in the 
Federal Register on June 20, 2025.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 103261 (Jun. 16, 
2025), 90 FR 26365 (``Notice''). The Commission has received no 
comments on the proposed rule change.
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    On July 28, 2025, pursuant to Section 19(b)(2) of the Act,\4\ the 
Commission designated a longer period within which to approve the 
proposed rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether to disapprove the proposed rule 
change.\5\ This order institutes proceedings under Section 19(b)(2)(B) 
of the Act \6\ to determine whether to approve or disapprove the 
proposed rule change.
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    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 103554, 90 FR 36086 
(July 31, 2025). The Commission designated Sept. 18, 2025, as the 
date by which the Commission shall approve or disapprove, or 
institute proceedings to determine whether to disapprove, the 
proposed rule change.
    \6\ 15 U.S.C. 78s(b)(2)(B).
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II. Summary of the Proposal

    As described in more detail in the Notice,\7\ the Exchange proposes 
to list and trade the Shares of the Trust under NYSE Arca Rule 8.201-E, 
which governs the listing and trading of Commodity-Based Trust Shares 
on the Exchange.
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    \7\ See Notice, supra note 3.
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    According to the Exchange, the investment objective of the Trust is 
to reflect generally the performance of the price of bitcoin,\8\ before 
payment of the Trust's expenses and liabilities.\9\ The Trust's assets 
will consist primarily of bitcoin.\10\ In determining the net asset 
value of the Trust, the Trust's administrator values the bitcoin held 
by the Trust based on the CF Benchmarks Index.\11\ The Trust will 
create and redeem Shares in cash with authorized participants on an 
ongoing basis in one or more blocks of 10,000 Shares.\12\
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    \8\ The Exchange states that bitcoin is a digital asset that is 
created and transmitted through the operations of the peer-to-peer 
network (the ``Bitcoin Network''), a decentralized network of 
computers that operates pursuant to cryptographic protocols. See id. 
at 26366.
    \9\ See id. at 26365. Yorkville America Digital, LLC 
(``Sponsor'') is the sponsor of the Trust and Foris DAX Trust 
Company, LLC is the custodian for the Trust's bitcoin. The Trust is 
a Nevada business trust that operates pursuant to a trust agreement 
between the Sponsor and the trustee for the Trust. See id.
    \10\ See id.
    \11\ See id. The Index serves as a once-a-day benchmark rate of 
the U.S. dollar price of bitcoin calculated as of 4:00 p.m. E.T and 
aggregates the trade flow of several bitcoin platforms during an 
observation window between 3:00 p.m. and 4:00 p.m. E.T. into the 
U.S. dollar price of one bitcoin at 4:00 p.m. E.T. See id. at 26366.
    \12\ See id. at 26368.
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III. Proceedings To Determine Whether To Approve or Disapprove SR-
NYSEARCA-2025-40 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section 
19(b)(2)(B) of the Act \13\ to determine whether the proposed rule 
change should be approved or disapproved. Institution of proceedings is 
appropriate at this time in view of the legal and policy issues raised 
by the proposed rule change. Institution of proceedings does not 
indicate that the Commission has reached any conclusions with respect 
to any of the issues involved. Rather, the Commission seeks and 
encourages interested persons to provide comments on the proposed rule 
change.
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    \13\ 15 U.S.C. 78s(b)(2)(B).
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    Pursuant to Section 19(b)(2)(B) of the Act,\14\ the Commission is 
providing notice of the grounds for disapproval under consideration. 
The Commission is instituting proceedings to allow for additional 
analysis of the proposed rule change's consistency with Section 6(b)(5) 
of the Act, which requires, among other things, that the rules of a 
national securities exchange be ``designed to prevent fraudulent and 
manipulative acts and practices'' and ``to protect investors and the 
public interest.'' \15\
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    \14\ Id.
    \15\ 15 U.S.C. 78f(b)(5).
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    The Commission asks that commenters address the sufficiency of the 
Exchange's statements in support of the proposal, which are set forth 
in the Notice, in addition to any other comments they may wish to 
submit about the proposed rule change. In particular, the Commission 
seeks comment on whether the proposal to list and trade Shares of the 
Trust, which would hold bitcoin, is designed to prevent fraudulent and 
manipulative acts and practices or raises any new or novel concerns not 
previously contemplated by the Commission.

IV. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written 
submissions of their views, data, and arguments with respect to the 
issues identified above, as well as any other concerns they may have 
with the proposal. In particular, the Commission invites the written 
views of interested persons concerning whether the proposal is 
consistent with Section 6(b)(5) or any other provision of the Act, and 
the rules and regulations thereunder. Although there do not appear to 
be any issues relevant to approval or disapproval that would be 
facilitated by an oral presentation of views, data, and arguments, the 
Commission will consider, pursuant to Rule 19b-4, any request for an 
opportunity to make an oral presentation.\16\
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    \16\ Section 19(b)(2) of the Act, as amended by the Securities 
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the 
Commission flexibility to determine what type of proceeding--either 
oral or notice and opportunity for written comments--is appropriate 
for consideration of a particular proposal by a self-regulatory 
organization. See Securities Acts Amendments of 1975, Senate Comm. 
on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st 
Sess. 30 (1975).
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    Interested persons are invited to submit written data, views, and 
arguments regarding whether the proposed rule change should be approved 
or disapproved by October 10, 2025. Any person who wishes to file a 
rebuttal to any other person's submission must file that rebuttal by 
October 24, 2025.

[[Page 45293]]

    Comments may be submitted by any of the following methods:

Electronic Comments

    <bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#d9abacb5bcf4bab6b4b4bcb7adaa99aabcbaf7beb6af"><span class="__cf_email__" data-cfemail="9be9eef7feb6f8f4f6f6fef5efe8dbe8fef8b5fcf4ed">[email&#160;protected]</span></a>. Please include 
file number SR-NYSEARCA-2025-40 on the subject line.

Paper Comments

    <bullet> Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-NYSEARCA-2025-40. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and 
copying at the principal office of the Exchange. Do not include 
personal identifiable information in submissions; you should submit 
only information that you wish to make available publicly. We may 
redact in part or withhold entirely from publication submitted material 
that is obscene or subject to copyright protection. All submissions 
should refer to file number SR-NYSEARCA-2025-40 and should be submitted 
on or before October 10, 2025. Rebuttal comments should be submitted by 
October 24, 2025.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(57).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025-18138 Filed 9-18-25; 8:45 am]
BILLING CODE 8011-01-P


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