Truth Social, the social media platform associated with Donald Trump, has unexpectedly cancelled its application for a spot Bitcoin ETF. This decision came to light after Yorkville America Equities withdrew several ETF filings with the U.S. Securities and Exchange Commission (SEC) on May 19th, including applications for the Truth Social Bitcoin ETF, a Bitcoin and Ethereum ETF, and a Crypto Blue Chip ETF.
Yorkville initially filed paperwork between June and July 2025, but has decided to focus on creating cryptocurrency investment products that comply with the Investment Company Act of 1940. They’re moving away from the more common ETF structure based on the Securities Act of 1933. Yorkville believes the 1940 Act provides better safeguards for investors, more adaptable options, and wider appeal to larger, institutional investors.
Competition Heating Up
According to Bloomberg ETF analyst James Seyffart, the recent activity might just be due to increased competition. He notes that the market for spot Bitcoin ETFs is now very crowded, particularly since Morgan Stanley introduced its MSBT ETF with a remarkably low fee of only 14 basis points.
NEW: Trump’s Truth social has withdrawn their Bitcoin ETF filing
— James Seyffart (@JSeyff) May 19, 2026
Seyffart wasn’t convinced by Yorkville’s reasoning, pointing out that the different rules for funds registered under the ’33 Act and ’40 Act are common knowledge in the financial industry. He believes the cost of launching another spot Bitcoin ETF might now outweigh the potential benefits.
From my analysis, it looks like Truth Social is shifting its crypto strategy. Instead of jumping into the crowded market of Bitcoin ETFs, they seem to be exploring more unique and adaptable crypto investment options. They’re likely aiming to differentiate themselves by offering something beyond what’s already available.
Market Reactions Pour In
Following Morgan Stanley’s competitive pricing strategy, Bloomberg analyst Eric Balchunas believes Truth Social probably understood it needed to offer very low fees to attract investors, or risk disappointing demand.
Crypto analyst Tony Edward viewed the withdrawal as a positive development, but Wendy O, a crypto content creator, felt the launch was poorly timed.
This is good news
— Tony Edward (Thinking Crypto Podcast) (@thinkingcrypto) May 19, 2026
Even though Yorkville has withdrawn its initial application, the company maintains its commitment to the cryptocurrency market. According to president Steve Neamtz, they are developing a more robust platform and may launch new crypto ETF products in the future with a revised approach.
For now, though, Truth Social’s spot Bitcoin ETF ambitions are officially on pause.
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2026-05-20 12:21