Key Takeaways
- Trump Media & Technology Group has canceled its SEC filings for a standalone Bitcoin ETF and a combined Bitcoin-Ethereum ETF.
- Yorkville America, the fund sponsor, describes the decision as tactical — planning to resubmit under the Investment Company Act of 1940 regulatory structure.
- The cancellation coincides with spot Bitcoin ETFs experiencing $648.6 million in net withdrawals on May 18, 2025.
- BlackRock’s Bitcoin fund recorded the steepest single-day decline, hemorrhaging $448.4 million.
- Industry analysts from Bloomberg point to intensifying fee competition, particularly Morgan Stanley’s ultra-low 14 basis point offering, as a potential factor.
Trump Media & Technology Group, the organization operating the Truth Social network, has abandoned its pursuit of launching two cryptocurrency exchange-traded funds with the U.S. Securities and Exchange Commission.
The organization submitted formal withdrawal documents for both its Truth Social Bitcoin ETF and its dual-asset Truth Social Bitcoin & Ethereum ETF. These applications were initially submitted in June 2025 utilizing Form S-1 under the Securities Act of 1933.
According to the withdrawal documentation, the organization “has determined to withdraw the Registration Statement and not to pursue the public offering at this time.”
The SEC never granted effectiveness status to either proposed fund. No investment shares were distributed in relation to these offerings.
The Strategic Rationale Behind the Withdrawal
Yorkville America, serving as both sponsor and investment advisor for the planned products, characterized the withdrawal as a calculated business decision.
The organization intends to resubmit its applications under the Investment Company Act of 1940, commonly referred to as the ’40 Act, instead of continuing with the ’33 Act framework originally chosen.
Steve Neamtz, who serves as president at Yorkville America, explained that the ’40 Act “allows us to bring more differentiated investment strategies to our investors that are not possible under the ’33 Act framework.”
The ’40 Act establishes operational and structural guidelines for investment companies, whereas the ’33 Act primarily regulates initial securities offerings.
Yorkville emphasized that adopting the ’40 Act framework provides enhanced investor safeguards, superior tax advantages, and elevated disclosure standards.
Market Dynamics and Fee Pressure
James Seyffart, a Bloomberg Research Analyst, suggested an alternative explanation for the strategic pivot.
He highlighted the escalating fee competition within the U.S. spot Bitcoin ETF marketplace. Morgan Stanley introduced its Bitcoin ETF product in recent weeks with an expense ratio of merely 14 basis points — establishing a new low-cost benchmark among U.S. Bitcoin ETFs.
This ultra-competitive offering has already attracted over $230 million in capital, surpassing both Hashdex and WisdomTree’s Bitcoin funds in total assets under management.
The SEC initially greenlit spot Bitcoin ETFs in January 2024. Subsequently, these investment vehicles have collectively accumulated over $57.7 billion in total capital inflows.
Massive Single-Day Outflows Hit Bitcoin ETF Market
The application withdrawal occurred during the same period when U.S. spot Bitcoin ETFs experienced substantial capital flight from institutional investors.
On May 18, 2025, spot Bitcoin ETFs collectively registered $648.6 million in net capital withdrawals within a 24-hour period.
BlackRock’s Bitcoin fund sustained the most severe outflow, shedding $448.4 million from the investment vehicle. Fidelity’s comparable offering lost $63.4 million. ARK Invest’s fund experienced $109.6 million in redemptions.
Additional outflows were documented across Bitwise, VanEck, Invesco, and Franklin Templeton products that day. WisdomTree and Valkyrie reported neutral activity with neither inflows nor outflows.
Every significant Bitcoin ETF product documented either capital withdrawals or flat performance on May 18.
