Trump Media & Technology Group has pulled its applications for Bitcoin and Bitcoin-Ethereum exchange-traded funds, abandoning plans to launch crypto ETF products under the Securities Act of 1933.
In its filing, the company stated: "The Company has determined to withdraw the Registration Statement and not to pursue the public offering at this time."
The firm cited a shift in regulatory strategy as the reason for the withdrawal. Steve Neamtz, president of Yorkville America — the sponsor and investment advisor for the Truth Social-branded funds — said the decision would allow greater flexibility going forward.
"Our focus has always been on delivering the right strategies through the right structures," Neamtz said, adding that "the '40 Act structure allows us to bring more differentiated investment strategies to our investors that are not possible under the '33 Act framework."
Bloomberg Research Analyst James Seyffart offered a different interpretation, pointing to a "more competitive landscape" for spot Bitcoin ETFs following the launch of Morgan Stanley's MSBT in April. That fund has already accumulated $266.72 million in total net assets and has undercut rivals with a market-leading annual expense ratio of 0.14% — compared to Grayscale's Bitcoin Mini Trust at 15 basis points and both BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund at 25 basis points.
"Of course a '33 Act ETP is different from a '40 Act ETF and it has less protections. Anyone in this space knows that. Nothing has changed," Seyffart wrote on social media on May 19, 2026. "I suspect it more has to do with the competitive landscape."
According to data from SoSoValue, the U.S. spot Bitcoin ETF market has attracted $57.4 billion in cumulative inflows since the SEC first approved such products in January 2024, making it one of the most successful ETF launches on record.
The withdrawn ETF applications are the latest in a series of crypto ventures linked to the Trump family, which have also included Trump-themed NFT collections, the TRUMP meme coin, and the World Liberty Financial decentralized finance platform. Trump's ties to the crypto industry have become a political flashpoint: a partisan report from House Judiciary Democrats last year accused the White House of running "the world's most corrupt crypto startup operation." Last week, Democratic senators attempted to introduce dozens of amendments to a crypto market structure bill, including measures aimed at limiting crypto-related ventures connected to the president and his family.
Why it matters
Yorkville America's stated reason for the switch — that the '40 Act allows 'more differentiated investment strategies' not possible under the '33 Act — signals that the regulatory framework chosen for a fund can shape what products sponsors are able to offer investors. An independent analyst noted that the '33 Act ETP structure carries fewer investor protections than its '40 Act counterpart.
Morgan Stanley's MSBT entered the spot Bitcoin ETF market in April with a 0.14% annual expense ratio, undercutting established rivals. The withdrawal illustrates how fee competition among existing issuers can affect the viability of new entrants before they even launch.
Democratic senators have already moved to introduce amendments to a crypto market structure bill that would limit crypto ventures tied to the president and his family, showing that political scrutiny of Trump-affiliated crypto products is an active legislative concern, not merely a rhetorical one.
