Trump's Truth Social Pulls Bitcoin ETF Application From SEC Review
Trump Media & Technology Group, the parent of Truth Social, has withdrawn its applications to launch Bitcoin and Bitcoin-Ethereum crypto exchange-traded funds (ETFs), citing a change in regulatory strategy. The company stated that switching from a ’33 Act ETP to a ’40 Act ETF structure would offer more investment flexibility. Yorkville America, acting as sponsor, said this decision enables differentiated offerings. However, analysts, including Bloomberg’s James Seyffart, attribute the withdrawal to growing competition in the spot Bitcoin ETF market, particularly since Morgan Stanley’s low-fee MSBT ETF launched and quickly amassed significant assets. U.S. spot Bitcoin ETFs have attracted $57.4 billion in inflows since January 2024, making them exceptionally successful launches. Crypto ventures associated with Trump—ranging from NFTs to DeFi coins—have drawn political scrutiny, with Democrats introducing bills to limit crypto ventures linked to Trump and alleging conflicts of interest.
