Trump-linked Truth Social has officially withdrawn its spot Bitcoin ETF filing, surprising many in the crypto market. The move was confirmed after Yorkville America Equities pulled multiple ETF registration statements from the U.S. Securities and Exchange Commission (SEC) on May 19, including the Truth Social Bitcoin ETF, the Bitcoin & Ethereum ETF, and the Crypto Blue Chip ETF.
The filings were originally submitted between June and July 2025, but Yorkville now says it wants to shift toward crypto investment products built under the Investment Company Act of 1940 instead of the traditional “33 Act” ETF structure. According to the company, the 1940 Act offers stronger investor protections, more flexibility, and better access to institutional investors.
Competition Heating Up
Bloomberg ETF analyst James Seyffart said the real reason may simply be competition. He pointed out that the spot Bitcoin ETF market has become extremely crowded, especially after Morgan Stanley launched its MSBT ETF with a very low 14-basis-point fee.
Seyffart questioned Yorkville’s explanation, saying the regulatory differences between 33 Act and 40 Act products were already well known in the industry. Instead, he suggested the economics of launching yet another spot Bitcoin ETF may no longer make sense.
He also noted that Truth Social may now focus on more flexible and differentiated crypto-related investment products rather than trying to compete directly in an already saturated Bitcoin ETF race.
Market Reactions Pour In
Bloomberg analyst Eric Balchunas speculated that after seeing Morgan Stanley’s aggressive pricing, Truth Social likely realized it would either have to launch with ultra-low fees or risk poor investor demand.
Meanwhile, crypto commentator Tony Edward called the withdrawal “good news,” while crypto creator Wendy O said the timing simply wasn’t right for the product.
Despite the withdrawal, Yorkville insists it is not leaving crypto behind. Company president Steve Neamtz said the firm is “stepping forward with a stronger product platform,” hinting that new crypto ETF products could still arrive later under the updated strategy.
For now, though, Truth Social’s spot Bitcoin ETF ambitions are officially on pause.
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