Truth Social Withdraws Bitcoin ETF Plans Following Yorkville Strategy Shift
Highlights:
- Truth Social withdrew three crypto ETF filings after Yorkville shifted toward the ’40 Act investment structure.
- Institutional competition and lower-fee products reshaped Bitcoin ETF Plans across the U.S. market.
- Trump Media is expanding Truth.Fi despite regulatory delays and the latest quarterly loss.
Trump Media & Technology Group has withdrawn several crypto ETF filings tied to the Truth Social investment platform. The withdrawn products included the Truth Social Bitcoin ETF, Truth Social Bitcoin and Ethereum ETF, and Truth Social Crypto Blue Chip ETF. Yorkville America filed the products on behalf of Trump Media and submitted the withdrawal requests to the U.S. Securities and Exchange Commission (SEC) on Monday.
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Trump-Linked Truth Social Withdraws Spot Bitcoin ETF Filing
Bloomberg ETF analyst James Seyffart noted that Truth Social has withdrawn its spot Bitcoin ETF filing. He suggested the decision may reflect intensifying competition in spot Bitcoin ETFs, especially after Morgan… pic.twitter.com/pNBZ03uZDd
— Wu Blockchain (@WuBlockchain) May 20, 2026
Yorkville America withdrew the Truth Social crypto ETFs registered under the Securities Act of 1933. The company now wants future Truth Social investment products to operate under the Investment Company Act of 1940 framework. Steve Neamtz, president of Yorkville America, said, “After careful evaluation, 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 said the ’40 Act framework gives Truth Social investment products stronger investor protections and clearer disclosure standards. The company also said the structure may reduce tax burdens for investors using Truth Social investment products.
Yorkville America did not announce replacement crypto ETF filings after withdrawing the Truth Social products. However, the company said it will continue building new rules-based investment products for Truth Social Funds investors. Yorkville America also said it will continue operating the Truth Social Funds platform despite withdrawing the crypto ETF filings.
Institutional Fee War Reshapes Truth Social Bitcoin ETF Plans
Bloomberg ETF analyst James Seyffart linked the Truth Social ETF withdrawals to growing competition in the spot Bitcoin ETF market. He pointed to Morgan Stanley’s MSBT ETF, which launched with a 0.14% fee ratio last month. Morgan Stanley launched the MSBT ETF with a fee that undercut most U.S. spot Bitcoin ETF competitors. Investors moved more than $230 million into the product within weeks of launch.
Reasoning is below in press release. But it doesn’t make a ton of sense to me. Of course a 33 act ETP is different from a 40 act ETF and it has less protections. Anyone in this space knows that. Nothing has changed. I suspect it more has to do with the competitive landscape for… pic.twitter.com/HDs2tKSxiN
— James Seyffart (@JSeyff) May 19, 2026
Morgan Stanley’s MSBT ETF now holds more assets than competing Bitcoin ETF products from Hashdex and WisdomTree. New crypto ETF issuers are facing competition from lower-fee Bitcoin funds and weaker investor demand across the U.S. ETF market. Investors have added more than $57.7 billion into U.S. spot Bitcoin ETFs since regulators approved the products.
Crypto ETF inflows have slowed sharply across the United States this year, with U.S. spot Bitcoin ETFs attracting only $790 million in net inflows. Investors also withdrew roughly $640 million from U.S. spot Ether ETFs this year. Spot Bitcoin ETFs recorded nearly $1 billion in net outflows during the week ending May 15.
Trump Media’s Digital Asset Expansion Faces Political and Financial Pressure
Truth Social withdrew the crypto ETF filings as lawmakers increase scrutiny over Trump Media’s digital asset business activities. Trump Media partnered with Crypto.com and Yorkville America Digital last year to build crypto investment products under the Truth.Fi brand. Trump Media filings outlined plans for Bitcoin investment products, crypto-related securities, and digital asset financial services under Truth.Fi.
The SEC delayed decisions on several proposed Truth Social crypto ETF products during the review process. Democratic senators also questioned President Donald Trump over his financial ties to crypto businesses and digital asset projects. Meanwhile, lawmakers increased scrutiny on Trump’s involvement with World Liberty Financial after his inauguration.
In a related development, Trump Media reported a $405.9 million first-quarter net loss tied partly to digital asset-related accounting charges. Trump Media said unrealized losses tied to digital assets and equity securities contributed heavily to the quarterly loss.
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Austin Mwendia
Austin Mwendia is a passionate crypto journalist with three years of experience. He has contributed to various media outlets, covering blockchain technology, market analysis, and financial trends. He is committed to educating readers and expanding the adoption of blockchain and decentralized finance.
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