{"id":3238,"date":"2026-05-20T20:50:57","date_gmt":"2026-05-20T20:50:57","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=3238"},"modified":"2026-05-20T20:50:57","modified_gmt":"2026-05-20T20:50:57","slug":"truth-social-withdraws-crypto-etf-plans-as-analysts-question-the-decision","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/05\/20\/truth-social-withdraws-crypto-etf-plans-as-analysts-question-the-decision\/","title":{"rendered":"Truth Social Withdraws Crypto ETF Plans as Analysts Question the Decision"},"content":{"rendered":"\n
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Crypto ETF ambitions connected to Truth Social have hit an unexpected obstacle after sponsor Yorkville America pulled several exchange traded fund applications linked to the platform.<\/p>\n\n\n\n

Recent filings submitted to the U.S. Securities and Exchange Commission revealed that the company withdrew registration statements for the proposed Truth Social Bitcoin ETF and the Truth Social Bitcoin and Ethereum ETF, both initially filed in June 2025. The withdrawal also included the planned Truth Social Crypto Blue Chip ETF.<\/p>\n\n\n\n

Trump Media\u2019s ETF Expansion Faces a Pause<\/strong><\/p>\n\n\n\n

Yorkville America explained that the decision to withdraw the crypto ETF filings was tied to a strategic shift toward launching investment products under the Investment Company Act of 1940 rather than the Securities Act of 1933.<\/p>\n\n\n\n

The firm said an internal review concluded that the 1940 Act structure would better support the rules based and differentiated investment strategies it intends to develop for investors.<\/p>\n\n\n\n

According to Yorkville America President Steve Neamtz, the newer framework allows the company to offer investment approaches that are not possible under the 1933 Act structure.<\/p>\n\n\n\n

He also stated that the 1940 Act framework provides stronger investor protections, greater operational flexibility, and broader access to institutional distribution networks.<\/p>\n\n\n\n

Yorkville America further explained that the structure includes safeguards such as board oversight, regular audits, fiduciary obligations, and ongoing SEC disclosure requirements. The company also highlighted benefits including wider availability across brokerage and retirement platforms, improved tax efficiency, and reliance on a regulatory system that has governed US investment companies for more than eight decades.<\/p>\n\n\n\n

ETF Analyst Questions the Explanation<\/strong><\/p>\n\n\n\n

Despite the company\u2019s justification, prominent ETF analyst James Seyffart expressed skepticism about the reasoning behind the withdrawal.<\/p>\n\n\n\n

Seyffart argued that the differences between exchange traded products operating under the 1933 Act and ETFs structured under the 1940 Act are already well understood within the financial industry and are not new developments.<\/p>\n\n\n\n

He suggested the decision may instead be linked to intensifying competition in the spot Bitcoin ETF market. In particular, he pointed to the launch of Morgan Stanley\u2019s low fee MSBT product, which reportedly carries a fee of just 14 basis points.<\/p>\n\n\n\n

Crypto ETFs Continue to Face Heavy Outflows<\/strong><\/p>\n\n\n\n

The withdrawal comes during a difficult period for the broader crypto ETF market as digital assets remain under pressure.<\/p>\n\n\n\n

Spot Bitcoin ETFs have recently recorded significant capital outflows. According to data compiled by SoSoValue, these products experienced losses of nearly 1 billion dollars last week alone.<\/p>\n\n\n\n

The trend has continued into the current week, with approximately 980 million dollars more withdrawn during the first two trading days.#crypto#cryptonews https:\/\/coinsignals.net<\/a> https:\/\/t.me\/coinsignalpublic<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Crypto ETF ambitions connected to Truth Social have hit an unexpected obstacle after sponsor Yorkville America pulled several exchange traded fund applications linked to the platform....<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3238","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/3238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=3238"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/3238\/revisions"}],"predecessor-version":[{"id":3240,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/3238\/revisions\/3240"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=3238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=3238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=3238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}