Key Highlights
- Trump Media & Technology Group has canceled its SEC filings for a spot Bitcoin ETF and a combined Bitcoin-Ethereum ETF.
- Yorkville America, the fund sponsor, claims the withdrawal is part of a strategic plan to refile under a different regulatory framework—the Investment Company Act of 1940.
- This decision coincides with a significant market downturn: U.S. spot Bitcoin ETFs experienced $648.6 million in net withdrawals on May 18, 2025.
- BlackRock’s Bitcoin ETF bore the brunt of the exodus, losing $448.4 million in a single trading session.
- Industry observers point to intensifying fee competition, particularly Morgan Stanley’s ultra-low-cost fund at just 14 basis points, as a potential factor.
Trump Media & Technology Group, the entity operating the Truth Social platform, has officially withdrawn its cryptocurrency exchange-traded fund applications from the Securities and Exchange Commission.
The firm submitted withdrawal documents for both its Truth Social Bitcoin ETF and its dual Truth Social Bitcoin & Ethereum ETF. These submissions were initially registered in June 2025 using 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 to either product. No shares or securities were distributed to investors for either proposed fund.
The Strategic Rationale Behind the Withdrawal
Yorkville America, serving as both sponsor and investment advisor for these proposed products, characterized the withdrawal as a calculated business decision.
The company intends to resubmit its applications under the Investment Company Act of 1940 (commonly referred to as the ’40 Act) instead of maintaining the ’33 Act framework originally chosen.
Steve Neamtz, who serves as president of 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 regulations for investment company structure and operations, whereas the ’33 Act primarily addresses the initial public distribution of securities.
Yorkville maintains that adopting the ’40 Act framework provides enhanced investor safeguards, superior tax optimization, and increased operational transparency.
Market Competition as a Potential Factor
James Seyffart, a Bloomberg Research Analyst, suggested an additional explanation for the strategic pivot.
He highlighted the increasingly cutthroat fee structure competition within the U.S. spot Bitcoin ETF marketplace. Morgan Stanley introduced its Bitcoin ETF in the previous month with an expense ratio of merely 14 basis points—establishing it as the most cost-effective option among all U.S. Bitcoin ETFs.
That product has already attracted over $230 million in capital inflows, surpassing both Hashdex and WisdomTree’s Bitcoin offerings in total net assets.
The SEC initially greenlit spot Bitcoin ETFs in January 2024. Subsequently, products in this category have accumulated over $57.7 billion in aggregate inflows.
Massive Single-Day Exodus: $648 Million Leaves Bitcoin ETFs
The timing of Trump Media’s withdrawal coincided with a turbulent week for institutional interest in Bitcoin ETF products.
On May 18, 2025, spot Bitcoin ETFs collectively experienced $648.6 million in net outflows within a 24-hour period.
BlackRock’s Bitcoin ETF sustained the most substantial outflow, hemorrhaging $448.4 million. Fidelity’s comparable product shed $63.4 million. ARK Invest’s offering witnessed $109.6 million in redemptions.
Bitwise, VanEck, Invesco, and Franklin Templeton similarly reported capital exits on that date. WisdomTree and Valkyrie registered neutral activity with neither inflows nor outflows.
Every major Bitcoin ETF product documented either capital withdrawals or stagnant inflow activity on May 18.
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