Yorkville America pulled three Truth Social crypto ETF filings, citing a shift to '40 Act structures. Bitcoin ETF demand slumped to $790M in 2026.
Yorkville America has withdrawn three crypto ETF applications filed on behalf of Trump Media & Technology Group, the company behind Truth Social. The move shifts the firm away from products registered under the Securities Act of 1933 toward structures governed by the Investment Company Act of 1940, a change Yorkville says offers more flexibility and stronger investor protections.
The withdrawals remove from the pipeline the Truth Social Bitcoin ETF, the Truth Social Bitcoin & Ethereum ETF, and the Truth Social Crypto Blue Chip ETF. Yorkville stated the decision followed a conclusion that the “40 Act” structure better suits the firm’s long-term goals and expanding investor base. The company did not say whether it plans to refile any crypto-related ETF applications under the new framework.
The three withdrawn products were:
Yorkville America filed these applications on behalf of Trump Media as part of the company’s expansion into digital finance through its Truth.fi platform. The withdrawals came without a commitment to refile under the new structure, leaving the fate of Truth Social’s crypto ETF ambitions uncertain.
Investment Company Act of 1940 products, commonly called “40 Act” funds, must meet stricter regulatory requirements around leverage, custody, and disclosure than Securities Act of 1933 products. The 1933 Act governs the initial registration of securities, while the 1940 Act imposes ongoing operational rules on the fund itself.
Yorkville argued the 40 Act framework provides more flexibility for creating innovative, rules-based investment strategies while offering stronger investor protections and potential tax advantages. For a sponsor like Yorkville, the shift also reduces the risk of regulatory pushback from the SEC, which has scrutinized crypto ETF filings under the 1933 Act for years.
The withdrawals occurred against a backdrop of weakening demand for US spot Bitcoin ETFs. According to data from Farside Investors, net inflows for these products stand at roughly $790 million year-to-date in 2026. That is a sharp decline from the approximately $25 billion that flowed into them in 2025.
Much of the remaining demand has concentrated in BlackRock’s iShares Bitcoin Trust ETF. Newer entrants face a fee war. The recently launched Morgan Stanley Bitcoin Trust ETF introduced one of the lowest management fees in the sector at 0.14%, squeezing margins for smaller sponsors.
Spot Ethereum ETFs have also struggled, recording net outflows this year. Newly launched altcoin ETFs failed to generate the same enthusiasm that earlier crypto investment products enjoyed. Bloomberg ETF analyst James Seyffart suggested that Yorkville’s decision may have been influenced by the competitive fee environment and the difficulty of differentiating products.
The ETF withdrawals come 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.
Much of the attention has focused on World Liberty Financial, a crypto platform tied to Trump and several of his business associates. The Truth Social ETF filings added another layer of exposure. The political risk may have accelerated Yorkville’s decision to shift to a regulatory framework that offers clearer investor protections and less room for conflict-of-interest accusations.
For a deeper look at how regulatory frameworks are evolving, see Fed Master Account Path Opens for Crypto in Twin Trump Orders.
The now-withdrawn ETFs were originally expected to form part of Trump Media’s expansion into digital finance through its Truth.fi platform. Without a refiled application, the timeline for that expansion is unclear. The company has not disclosed whether it will pursue alternative crypto investment products under the 40 Act or abandon the effort entirely.
Truth Social itself remains a niche social media platform with limited revenue diversification. The crypto ETF strategy was one of the more visible attempts to broaden its business model. The withdrawal raises questions about the viability of that plan, especially given the broader slowdown in crypto ETF demand.
For context on the current state of crypto markets, see our crypto market analysis.
The key risk for Truth Social and Yorkville is that the 40 Act pivot does not lead to a refiled product. If no new application emerges within the next quarter, the market will likely interpret the withdrawal as a full retreat from crypto ETFs. That would remove a potential catalyst for Bitcoin and Ethereum adoption among retail investors aligned with Trump’s base.
What would confirm the thesis that the withdrawal is temporary:
What would weaken the thesis:
For traders tracking the sector, the Morgan Stanley Bitcoin Trust ETF (fee 0.14%) and BlackRock’s iShares Bitcoin Trust remain the dominant vehicles. The withdrawal of Truth Social’s filings removes a potential competitor but does not change the structural headwinds facing the broader market.
Check the Bitcoin (BTC) profile for real-time data on flows and pricing.
The next concrete marker is Yorkville’s next SEC filing. If it contains a new crypto ETF under the 40 Act, the strategy pivot was real. If not, the withdrawal was a quiet exit from a market that no longer rewards late entrants.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.