The firm said it is shifting from Securities Act of 1933 products to structures under the Investment Company Act of 1940 to pursue more flexible investment strategies with stronger investor protections. The withdrawals also come as US crypto ETF demand weakens in 2026 and competition in the Bitcoin ETF market intensifies. Truth Social Pulls Multiple Crypto ETF Plans Asset manager Yorkville America withdrew several crypto exchange-traded fund (ETF) applications that were filed on behalf of Trump Media & Technology Group, the company behind the social media platform Truth Social. Among the withdrawn applications were the proposed Truth Social Bitcoin ETF, the Truth Social Bitcoin & Ethereum ETF, and the Truth Social Crypto Blue Chip ETF. According to Yorkville America, the move is part of a transition away from products registered under the Securities Act of 1933 and toward investment structures governed by the Investment Company Act of 1940. The company explained that the newer framework will provide more flexibility for creating innovative, rules-based investment strategies while also offering stronger investor protections and potential tax advantages. Yorkville America stated that the decision was made after concluding that the “40 Act” structure was better suited for the firm’s long-term goals and expanding investor base. However, the company did not indicate whether it plans to refile any crypto-related ETF applications under the new framework in the future. The withdrawals came during a period of heightened political scrutiny surrounding Donald Trump’s involvement in the crypto sector. Since Trump returned to office, Democratic lawmakers have repeatedly questioned whether his financial connections to crypto businesses could create conflicts of interest with his presidential duties. A lot of attention has been directed toward World Liberty Financial, a crypto platform tied to Trump and several of his business associates. At the same time, the crypto ETF market has experienced a slowdown in 2026. Demand for spot Bitcoin ETFs in the United States weakened quite a bit compared to the explosive inflows seen in 2025. Recent Bitcoin ETF flows (Source: Farside Investors) Current net inflows for US spot Bitcoin ETFs stand at roughly $790 million this year, which is a sharp decline from the approximately $25 billion that flowed into these products last year. Much of the remaining demand has been concentrated in BlackRock’s iShares Bitcoin Trust ETF. Spot Ethereum ETFs have also struggled, and recorded big net outflows during the year. Newly launched altcoin ETFs also failed to generate the same enthusiasm that earlier crypto investment products enjoyed. X post from James Seyffart Bloomberg ETF analyst James Seyffart suggested that Yorkville America’s decision may also have been influenced by the very competitive Bitcoin ETF market, especially as firms compete on fees and investor incentives. One example is the recently launched Morgan Stanley Bitcoin Trust ETF, which reportedly introduced one of the lowest management fees in the sector at just 0.14%. The now-withdrawn ETF products were originally expected to form part of Trump Media’s expansion into digital finance through its Truth.fi platform.
