Truth Social has pulled its two proposed Bitcoin ETF filings with the U.S. Securities and Exchange Commission, bowing to an increasingly crowded market dominated by deep-pocketed issuers. The withdrawn products were the Truth Social Bitcoin ETF and the Truth Social Bitcoin & Ethereum ETF.
Shift to 1940 Act Structure
Originally submitted in June 2025, the applications were withdrawn as Trump Media & Technology Group reconsidered its approach. Yorkville America, the sponsor and investment adviser, said the withdrawal aligns with a strategic pivot toward products structured under the Investment Company Act of 1940 rather than the Securities Act of 1933. Yorkville America president Steve Neamtz cited stronger investor protections, improved transparency, greater accessibility, and enhanced tax efficiency as benefits of the new framework.
Low-Fee Bitcoin Fund Intensifies Competition
Bloomberg Research analyst James Seyffart said rising competition likely drove the decision. He pointed to Morgan Stanley's MSBT fund, which entered the market with one of the lowest fee structures among U.S. spot Bitcoin ETFs. The fund attracted over $230 million in inflows within weeks and quickly surpassed several rivals in total net assets. Since spot Bitcoin ETFs were approved in January 2024, cumulative inflows have reached $57.7 billion, making the category one of the strongest in ETF history.
Truth Social's applications had already faced regulatory delays before the withdrawal. Despite the setback, Yorkville America indicated that alternative crypto investment products could still emerge later under a revised regulatory structure.
Trump Media's Broader Crypto Footprint
Beyond ETFs, Trump Media has expanded into memecoins and the decentralized finance platform World Liberty Financial. The Truth Social ETF withdrawal highlights the intense pressure on newcomers in the spot Bitcoin ETF market, where established players command the bulk of investor flows. Yorkville America signaled that a different product structure may allow it to re-enter the crypto investment space in the future.