Trump's Truth Social Pulls Bitcoin ETF Application From SEC Review
Trump Media & Technology Group withdrew its Bitcoin and Bitcoin-Ethereum ETF applications from SEC review, citing a shift to the '40 Act' regulatory framework instead of the '33 Act'. The move follows intense competition in the $57.4 billion U.S. spot Bitcoin ETF market, particularly after Morgan Stanley’s MSBT launch with a lower 0.14% annual fee.
Trump Media & Technology Group, the company behind Donald Trump’s Truth Social platform, has withdrawn its applications for a Bitcoin ETF and a Bitcoin-Ethereum ETF from the U.S. Securities and Exchange Commission (SEC). In its SEC filing, the company stated it would no longer pursue the public offering at this time, opting instead for a different regulatory approach. The decision stems from a strategic shift by Yorkville America, the sponsor and investment advisor for Truth Social funds. Yorkville America announced it would transition product development to the '40 Act' framework, which offers more flexibility for differentiated investment strategies than the '33 Act' structure. Steve Neamtz, president of Yorkville America, emphasized that this change would allow the company to explore more compelling ETF strategies. The withdrawal coincides with heightened competition in the U.S. spot Bitcoin ETF market, now valued at $57.4 billion in cumulative inflows since SEC approval in January 2024. Morgan Stanley’s MSBT ETF, launched in April, has drawn significant attention with $266.72 million in net assets and a market-leading 0.14% annual expense ratio, undercutting competitors like Grayscale’s Bitcoin Mini Trust and BlackRock’s iShares Bitcoin Trust. This is the latest crypto-related venture linked to the Trump family, which has previously included Trump-themed NFT collections, the TRUMP meme coin, and the World Liberty Financial DeFi platform. The move also comes amid political scrutiny, as Democratic lawmakers have accused the Trump administration of operating a corrupt crypto startup operation and recently proposed amendments to limit crypto ventures tied to the president. The SEC filing confirms the company’s decision to abandon the ETF plans for now, though Yorkville America’s shift to the '40 Act' may open new opportunities in the crypto investment space. The withdrawal reflects both regulatory strategy and market pressures in the rapidly evolving ETF landscape.
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