Truth Social owner withdraws Bitcoin ETF filings, eyes 1940 Act

Trump Media & Technology Group withdrew its registration statement for proposed Bitcoin and Bitcoin–Ethereum exchange-traded funds and will pursue registration under the Investment Company Act of 1940 instead of the Securities Act of 1933, according to an SEC filing.

In the filing the company wrote: “The Company has determined to withdraw the Registration Statement and not to pursue the public offering at this time.” The filings were sponsored and advised by Yorkville America, which described the change as a shift in regulatory strategy.

Yorkville president Steve Neamtz wrote that a ’40 Act structure offers greater flexibility for certain investment strategies that are not available under a ’33 Act framework. He added that the ’40 Act “allows us to bring more differentiated investment strategies to our investors that are not possible under the ’33 Act framework.”

U.S. spot Bitcoin ETFs have drawn about $57.4 billion in cumulative inflows since regulatory approvals began in January 2024. Morgan Stanley launched its MSBT product in April with a 0.14% annual expense ratio and roughly $266.7 million in net assets; several competing funds trade with expense ratios near 0.15% to 0.25%. Analyst James Seyffart wrote on social media that the more competitive, low-fee landscape may be altering the economics for new entrants.

The proposed ETFs were among several crypto-linked projects tied to the company behind Truth Social and the Trump family, which have included Trump-branded nonfungible tokens, a TRUMP meme coin and a DeFi platform called World Liberty Financial. Crypto activities connected to the president have drawn political attention, including a partisan House Judiciary Democrats report that accused the White House of running “the world’s most corrupt crypto startup operation.” Last week, Democratic senators proposed amendments to a crypto market structure bill that would limit certain crypto ventures associated with the president and his family.

Yorkville did not provide a timeline for refiling under the 1940 Act or further details on the fund structure it intends to pursue. The withdrawn registration leaves the company not pursuing a public offering at this time.