The firm behind Donald Trump’s social media platform, Truth Social, has officially decided to withdraw its applications for two proposed cryptocurrency exchange-traded funds (ETFs). This marks a significant retreat from its plans for both Bitcoin and Bitcoin-Ethereum ETFs. In a recent filing, Trump Media & Technology Group stated, “The Company has determined to withdraw the Registration Statement and not to pursue the public offering at this time.”
The decision to withdraw is attributed to a change in the firm’s regulatory strategy. Steve Neamtz, president of Yorkville America—the sponsor and investment advisor for the proposed Truth Social funds—indicated that this move would allow greater flexibility in their approach. Neamtz emphasized that their primary objective has always been to implement appropriate strategies through suitable structures, adding that the ’40 Act framework provides an opportunity to offer more varied investment strategies than those permissible under the ’33 Act.
The competitive landscape for spot Bitcoin ETFs has become increasingly intense, as highlighted by Bloomberg Research Analyst James Seyffart. He pointed to the successful launch of Morgan Stanley’s MSBT in April, which has reportedly amassed $266.72 million in total net assets. This ETF offers a notably low annual expense ratio of 0.14%, significantly undercutting its competition; Grayscale’s Bitcoin Mini Trust charges 15 basis points, while both BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund come in at 25 basis points.
According to SoSoValue, since the U.S. Securities and Exchange Commission (SEC) initially approved these products in January 2024, the U.S. spot Bitcoin ETF market has garnered a remarkable $57.4 billion in cumulative inflows, making it one of the most successful ETF launches to date.
This withdrawal is part of a broader pattern of cryptocurrency ventures associated with the Trump family, which has included various initiatives such as Trump-themed NFT collections, a TRUMP meme coin, and the World Liberty Financial DeFi platform. However, Trump’s involvement in the crypto industry has not been without controversy. It has become a polarizing political issue, particularly highlighted by a partisan report from House Judiciary Democrats last year, which accused the White House of leading “the world’s most corrupt crypto startup operation.” The situation escalated last week when Democratic Senators sought to introduce multiple amendments to a forthcoming crypto market structure bill, aiming to restrict crypto ventures that are tied to the president and his family.
