TheBlock
Trump Media & Technology Group's Truth Social has filed to withdraw its applications for a Truth Social Bitcoin ETF and a Truth Social Bitcoin & Ethereum ETF from the Securities and Exchange Commission, according to SEC filings submitted on Monday. The Form S-1 registration statements had originally been filed in June 2025 and had already faced repeated delays from the regulator.
Sponsor Yorkville America said the move was intended to pursue a more compelling ETF strategy under the Investment Company Act of 1940 rather than the Securities Act of 1933 framework originally used. "The '40 Act structure allows us to bring more differentiated investment strategies to our investors that are not possible under the '33 Act framework," Yorkville America president Steve Neamtz said.
Why it matters
Bloomberg Research analyst James Seyffart linked the withdrawal to the increasingly competitive spot bitcoin ETF landscape, flagging Morgan Stanley's MSBT — launched last month at a 14 basis-point fee ratio — as the likely pressure point. MSBT has already pulled in over $230 million in inflows since launch, surpassing Hashdex and WisdomTree's bitcoin funds in net assets. Cumulative inflows into U.S. spot bitcoin ETFs approved since January 2024 have topped $57.7 billion, making the category one of the most successful ETF launches on record.
Market impact
The withdrawal pares back President Trump's crypto footprint at the publicly traded vehicle level, even as his related ventures — the TRUMP memecoin and the DeFi project World Liberty Financial — continue operating. For the broader ETF race, the exit removes one more would-be entrant from an already crowded fee war; for Yorkville, the '40 Act pivot opens structural advantages including tax efficiency, heightened investor protections, and a path to strategies the original '33 Act wrapper couldn't accommodate.
Frequently asked questions
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Why did Truth Social withdraw its bitcoin ETF application?
According to sponsor Yorkville America, the withdrawal is a strategic pivot to the Investment Company Act of 1940 framework, which the firm says enables more differentiated investment strategies than the original Securities Act of 1933 structure.
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What did Bloomberg analyst James Seyffart say about the withdrawal?
Seyffart linked the move to competitive pressure in the spot bitcoin ETF space, specifically pointing to Morgan Stanley's MSBT, which launched last month at a 14 basis-point fee ratio and has already crossed $230 million in inflows.
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How much have U.S. spot bitcoin ETFs attracted in total?
U.S. spot bitcoin ETFs approved since January 2024 have collectively pulled in over $57.7 billion in cumulative inflows, making the category one of the best-performing ETF launches on record.
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What is the difference between the '33 Act and '40 Act structures?
The Securities Act of 1933 regulates the initial offering and sale of securities to the public, while the Investment Company Act of 1940 governs the structure, operations, and governance of investment companies, with Yorkville America citing tax efficiency and broader investor access as '40 Act advantages.
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What other crypto ventures is the Trump family involved in?
Beyond the withdrawn ETF applications, President Trump is connected to the TRUMP memecoin and the DeFi project World Liberty Financial, both of which continue to operate independently of the Truth Social fund business.
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