Why Trump Media Just Withdrew Its Bitcoin ETF Applications from the SEC

Key Takeaways

Table of Contents

Trump Media & Technology Group has canceled its filings for a spot Bitcoin ETF and a combined Bitcoin-Ethereum ETF with the SEC.
Yorkville America, the fund sponsor, claims the withdrawal is tactical — planning to refile using the Investment Company Act of 1940 structure instead.
This decision follows a significant day of outflows for U.S. spot Bitcoin ETFs, which recorded $648.6 million in net withdrawals on May 18, 2025.
BlackRock experienced the heaviest losses, recording $448.4 million in single-day outflows.
Market analysts point to intensifying fee competition, highlighted by Morgan Stanley’s new fund with just 14 basis points in fees, as a potential factor.

Trump Media & Technology Group, the entity operating the Truth Social platform, has withdrawn its filings for two cryptocurrency exchange-traded funds from the Securities and Exchange Commission.

🚨JUST IN: Trump's Truth Social has filed to withdraw its Bitcoin $BTC ETF application with the SEC. pic.twitter.com/R3L4qzz8HV
— Coin Bureau (@coinbureau) May 20, 2026

The organization submitted withdrawal documents for both its Truth Social Bitcoin ETF and its Truth Social Bitcoin & Ethereum ETF. These applications were initially submitted in June 2025 through Form S-1 under the Securities Act of 1933.

According to the withdrawal documentation, the firm “has determined to withdraw the Registration Statement and not to pursue the public offering at this time.”

The SEC had not approved either fund for trading. No shares or securities were distributed to investors for either product.

The Strategic Reasoning Behind the Withdrawal

Yorkville America, serving as the sponsor and investment advisor for these proposed products, characterized the withdrawal as a calculated business decision.

The company intends to submit new applications under the Investment Company Act of 1940 framework, commonly referred to as the ’40 Act, instead of continuing with the ’33 Act approach originally chosen.

Steve Neamtz, serving as president at 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 regulatory requirements for investment company structure and operations, whereas the ’33 Act addresses the public offering and sale of securities.

Yorkville stated that adopting the ’40 Act framework provides enhanced investor safeguards, superior tax treatment, and increased operational transparency.

Market Competition as a Contributing Factor

James Seyffart, a Bloomberg Research Analyst, suggested an alternative explanation for the withdrawal.

He highlighted the intensifying fee competition among U.S. spot Bitcoin ETF providers. Morgan Stanley introduced its Bitcoin ETF in recent weeks with an expense ratio of only 14 basis points — establishing it as the most affordable U.S. Bitcoin ETF available.

This Morgan Stanley product has already attracted over $230 million in capital, surpassing both Hashdex and WisdomTree’s Bitcoin offerings in total assets under management.

The SEC granted approval for spot Bitcoin ETFs in January 2024. These investment vehicles have collectively attracted over $57.7 billion in total inflows since their market debut.

Major Single-Day Outflow Event for Bitcoin ETFs

The application withdrawal occurred during the same week that U.S. spot Bitcoin ETFs experienced a substantial decline in institutional interest.

On May 18, 2025, these investment products collectively recorded $648.6 million in net withdrawals during a single trading session.

BlackRock’s offering experienced the most severe outflow, losing $448.4 million in assets. Fidelity’s product shed $63.4 million. ARK Invest’s fund experienced $109.6 million in redemptions.

Additional providers including Bitwise, VanEck, Invesco, and Franklin Templeton also registered outflows that day. WisdomTree and Valkyrie experienced neither inflows nor outflows.

Every major Bitcoin ETF provider recorded either negative flows or flat activity on May 18.