Truth Social’s planned push into cryptocurrency exchange-traded funds has suffered a setback after sponsor Yorkville America withdrew multiple applications tied to the social media company’s investment products.
Regulatory filings submitted to the US Securities and Exchange Commission (SEC) show the company pulled its registration statements for the Truth Social Bitcoin ETF and the Truth Social Bitcoin & Ethereum ETF, both originally filed in June 2025. The withdrawal also covers the proposed Truth Social Crypto Blue Chip ETF.
Trump Media’s ETF Push Stalls
Yorkville America said it withdrew its crypto ETF filings under the Securities Act of 1933 as part of a strategic decision toward launching investment products under the Investment Company Act of 1940. The advisor said the move followed an internal evaluation that found the ’40 Act framework better supports the differentiated and rules-based investment strategies it plans to develop for its investors.
According to Yorkville America President Steve Neamtz, the structure allows the company to offer investment strategies that are not possible under the ‘33 Act framework. He added,
“The ’40 Act framework – the regulatory structure under which the existing Truth Social Funds suite operates – provides enhanced investor protections, greater operational flexibility, and access to a broader range of institutional distribution channels.”
Yorkville America said the ’40 Act framework offers stronger investor protections through board oversight, audits, and fiduciary standards, while also providing wider access across brokerage and retirement platforms. The firm added that the structure can improve tax efficiency, requires regular SEC disclosures, and operates under a long-established regulatory framework that has governed US investment companies for more than 80 years.
However, prominent ETF analyst James Seyffart believes that the reasoning in the press release “doesn’t make a ton of sense.” Seyffart said that the differences between a ’33 Act exchange-traded product and a ’40 Act ETF, including the lower investor protections under the ’33 Act structure, are already well known within the industry and are not new developments.
He believes the decision is more likely tied to growing competition in the spot Bitcoin ETF market, particularly the launch of MSBT by Morgan Stanley with a fee of 14 basis points.
ETFs Extend Losing Streak
The latest development also follows a slowdown in the crypto ETF market as digital assets remain under significant pressure. Spot Bitcoin ETFs have seen major outflows recently.
These funds lost roughly $1 billion last week, according to data compiled by SoSoValue. Additionally, almost $980 million more has been pulled out during just the first two days of the current week.
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