Truth Social backer Yorkville America withdraws crypto ETF filings amid strategy shift

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Truth Social ETF withdrawal

Highlights

Yorkville America withdrew Truth Social Bitcoin ETF and other crypto ETF filings, shifting from 1933 Act to 1940 Act structures for enhanced investor protections.
U.S. spot Bitcoin ETF net inflows totaled $790 million in 2026 year-to-date, sharply down from $25 billion in 2025, signaling falling investor demand.
Competitive pressures intensify as Morgan Stanley Bitcoin Trust ETF launches with a 0.14% fee, while increased political scrutiny targets Trump Media's crypto ventures.

Shift to 1940 Act structures

As reported by the U.S. Securities and Exchange Commission, Yorkville America has asked to withdraw multiple crypto exchange-traded fund applications filed for Truth Social, including the proposed Truth Social Bitcoin ETF, Truth Social Bitcoin & Ethereum ETF and Truth Social Crypto Blue Chip ETF.

Yorkville America says it is moving away from products registered under the Securities Act of 1933 and toward structures governed by the Investment Company Act of 1940. The firm says the change would allow it to develop more innovative, rules-based investment strategies while offering stronger investor protections and tax efficiencies.

The asset manager, which is known for “America First”-themed products, does not indicate that it will pursue a crypto ETF under the '40 Act framework. Yorkville serves as financier and asset manager for Trump Media & Technology Group, the parent company behind Truth Social.

Crypto ETF market pressure and political scrutiny

The withdrawals come as crypto ETF demand cools amid a broader market pullback. U.S. spot Bitcoin ETFs have recorded net inflows of $790 million so far in 2026 as of Tuesday, far below the $25 billion that flowed in during 2025, while spot Ether ETFs have posted $640 million in net outflows.

New altcoin ETF launches are also failing to attract the same level of investor interest seen in earlier products. Bloomberg ETF analyst James Seyffart says Yorkville America may also be responding to a tougher competitive environment, especially after the launch of the Morgan Stanley Bitcoin Trust ETF with a 0.14% fee.

The ETF plans are part of a broader crypto strategy linked to Trump Media's Truth.fi financial platform, launched last year. At the same time, Trump's connections to the crypto industry remain under scrutiny, with Democratic senators seeking answers since his January 2025 inauguration over potential conflicts tied to ventures including World Liberty Financial.

In our earlier coverage of questions around Trump’s financial disclosures and related conflict-of-interest concerns, we highlighted the scale of reported Q1 2026 stock transactions and the White House response that the assets are managed through trusts and discretionary third-party accounts. We also noted Vice President JD Vance’s insistence that Trump does not personally execute trades, alongside the administration’s stated support for banning congressional stock trading.

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