Trump-Linked Truth Social Suddenly Pulls Crypto ETF, Analyst Doubts Reasoning Behind Exit
Truth Social’s deliberate push into cryptocurrency exchange-traded funds has suffered a setback after sponsor Yorkville America withdrew a number of purposes tied to the social media firm’s funding merchandise.
Regulatory filings submitted to the US Securities and Exchange Commission (SEC) present the corporate pulled its registration statements for the Truth Social Bitcoin ETF and the Truth Social Bitcoin & Ethereum ETF, each initially filed in June 2025. The withdrawal additionally covers the proposed Truth Social Crypto Blue Chip ETF.
Trump Media’s ETF Push Stalls
Yorkville America said it withdrew its crypto ETF filings underneath the Securities Act of 1933 as a part of a strategic determination towards launching funding merchandise underneath the Investment Company Act of 1940. The advisor stated the transfer adopted an inside analysis that discovered the ’40 Act framework higher helps the differentiated and rules-based funding methods it plans to develop for its traders.
According to Yorkville America President Steve Neamtz, the construction permits the corporate to supply funding methods that aren’t potential underneath the ‘33 Act framework. He added,
“The ’40 Act framework – the regulatory construction underneath which the present Truth Social Funds suite operates – offers enhanced investor protections, higher operational flexibility, and entry to a broader vary of institutional distribution channels.”
Yorkville America stated the ’40 Act framework presents stronger investor protections by board oversight, audits, and fiduciary requirements, whereas additionally offering wider entry throughout brokerage and retirement platforms. The agency added that the construction can enhance tax effectivity, requires common SEC disclosures, and operates underneath a long-established regulatory framework that has ruled US funding firms for greater than 80 years.
However, distinguished ETF analyst James Seyffart believes that the reasoning within the press launch “doesn’t make a ton of sense.” Seyffart stated that the variations between a ’33 Act exchange-traded product and a ’40 Act ETF, together with the decrease investor protections underneath the ’33 Act construction, are already well-known inside the trade and will not be new developments.
He believes the choice is extra possible tied to rising competitors within the spot Bitcoin ETF market, notably the launch of MSBT by Morgan Stanley with a price of 14 foundation factors.
ETFs Extend Losing Streak
The newest improvement additionally follows a slowdown within the crypto ETF market as digital belongings remain underneath important stress. Spot Bitcoin ETFs have seen main outflows just lately.
These funds misplaced roughly $1 billion final week, based on knowledge compiled by SoSoValue. Additionally, virtually $980 million extra has been pulled out throughout simply the primary two days of the present week.
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