Truth Social, the social media platform operated by Trump Media & Technology Group, has filed to withdraw its cryptocurrency exchange-traded fund applications with the Securities and Exchange Commission. According to filings submitted to the SEC on Monday, the firm requested to withdraw its Form S-1 registration statement for the Truth Social Bitcoin ETF and the Truth Social Bitcoin & Ethereum ETF, which were originally filed in June 2025. "The Company has determined to withdraw the Registration Statement and not to pursue the public offering at this time," the filing stated. Yorkville America, the sponsor and investment advisor for Truth Social's funds, said the withdrawal was intended to pursue a more compelling ETF strategy under a different regulatory framework.
Shift to '40 Act Structure
Yorkville America announced plans to transition product development to the Investment Company Act of 1940 ('40 Act) framework rather than continuing under the Securities Act of 1933 ('33 Act). "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," said Steve Neamtz, president of Yorkville America.
The '33 Act primarily regulates the initial offering and sale of securities to the public, whereas the '40 Act governs the structure, operations, and governance of investment companies. Yorkville America stated that the '40 Act framework offers structural advantages for investors, including enhanced investor protections, heightened accessibility, tax efficiency, and transparency.
Competitive Landscape
Bloomberg Research Analyst James Seyffart attributed the withdrawal partly to competitive pressures in the spot Bitcoin ETF market. "I suspect it has more to do with the competitive landscape for spot bitcoin ETFs," Seyffart said. "Particularly with Morgan Stanley's MSBT (MSBT) coming in at 14 bps."
Morgan Stanley launched MSBT last month with the lowest fee ratio among U.S. Bitcoin ETFs. The fund has since attracted over $230 million in inflows, already surpassing Hashdex and WisdomTree's BTC funds in net assets.
The SEC initially approved spot Bitcoin ETFs in the U.S. in January 2024. Since their launch, approved funds have amassed cumulative inflows of over $57.7 billion, making the category one of the best-performing ETF launches on record. Truth Social's ETF applications had previously faced delays from the SEC.
