- Truth Social withdrew filings for spot Bitcoin and Ethereum ETFs in the U.S.
- Sponsor Yorkville is shifting focus toward 1940 Act crypto ETF products.
- The move comes as competition in U.S. spot Bitcoin ETFs continues to intensify.
Trump Media & Technology Group-owned Truth Social has withdrawn three crypto ETF filings from review by the U.S. SEC. In effect, the move puts its spot Bitcoin and Ethereum ETF ambitions on pause for now.
The withdrawals were submitted on May 19 by the sponsor, Yorkville America Equities, under SEC Rule 477(a). The affected products include the Truth Social Bitcoin ETF, the Truth Social Bitcoin & Ethereum ETF, and the Truth Social Crypto Blue Chip ETF, which had originally been filed between June and July 2025.
In the filings, Yorkville stated that it had “determined to withdraw the Registration Statement and not to pursue the public offering at this time.”
Yorkville Shifts Focus to ‘40 Act’ ETF Structure
Meanwhile, Yorkville is not abandoning crypto ETFs entirely. Instead, it plans to redirect product development toward funds structured under the Investment Company Act of 1940, commonly known as the “40 Act.”
According to the company, the new framework could offer stronger investor protections, greater flexibility, improved transparency, and broader access to institutional distribution channels than the Securities Act of 1933 framework used for spot crypto ETFs.
Steve Neamtz, President of Yorkville America, described the move as a strategic pivot instead of a retreat. “We are not stepping back, we are stepping forward with a stronger product platform,” he said.
The 1933 Act mainly governs the public offering and sale of securities, while the 1940 Act regulates how investment companies operate and are managed.
Bloomberg Analyst Questions Explanation
However, James Seyffart of Bloomberg Intelligence suggested the shift may have more to do with market competition than regulation.
In comments on X, Seyffart said the explanation “doesn’t make a ton of sense”. He noted that the differences between 1933 Act exchange-traded products and 1940 Act ETFs have long been understood within the industry.
Instead, he pointed to increasing competition in the U.S. spot Bitcoin ETF market, particularly after Morgan Stanley launched its MSBT spot Bitcoin ETF with a low 14-basis-point fee.
The fund attracted more than $230 million in inflows within weeks of its launch, overtaking some existing Bitcoin ETF products from Hashdex and WisdomTree in terms of assets.
Seyffart added that launching more differentiated crypto strategies under the 40 Act structure “makes sense,” given the number of spot Bitcoin ETFs already on the market.
Spot Bitcoin ETF Market Continues Growing
The SEC first approved spot Bitcoin ETFs in the United States in January 2024. Since then, the category has grown rapidly, with cumulative inflows surpassing $57 billion. This has made spot Bitcoin ETFs one of the most successful ETF launches in industry history.
Ultimately, the ETF plan is part of wider crypto activity linked to Donald Trump and Truth Social’s parent company. Trump has also expanded into digital assets through memecoins and DeFi projects like World Liberty Financial.
Notably, Yorkville has not said when it may refile new crypto ETF products under the 40 Act framework.
Related: Trump Orders Fed Review of Crypto Access to U.S. Payment Infrastructure
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