Truth Social’s plan to launch cryptocurrency exchange-traded funds has hit a setback after sponsor Yorkville America withdrew several registration statements tied to the social media company’s proposed investment products.
Filings with the U.S. Securities and Exchange Commission show Yorkville pulled the registrations for the Truth Social Bitcoin ETF and the Truth Social Bitcoin & Ethereum ETF, both initially filed in June 2025. The withdrawal also applies to the proposed Truth Social Crypto Blue Chip ETF.
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Yorkville America said it withdrew the crypto ETF filings under the Securities Act of 1933 as part of a strategic shift toward launching products under the Investment Company Act of 1940. The firm said an internal review concluded that the ’40 Act framework better supports the differentiated, rules-based investment strategies it intends to develop.
According to Yorkville America president Steve Neamtz, the ’40 Act structure enables strategies not feasible under the ’33 Act framework. He explained,
“The ’40 Act framework – the regulatory structure under which the existing Truth Social Funds suite operates – provides enhanced investor protections, greater operational flexibility, and access to a broader range of institutional distribution channels.”
The company emphasized that the ’40 Act framework includes stronger investor protections via board oversight, audits, and fiduciary standards, while offering broader distribution across brokerages and retirement platforms. Yorkville also noted potential tax-efficiency benefits, routine SEC disclosures, and the fact that the framework has governed U.S. investment companies for more than 80 years.
Not everyone is convinced by that explanation. ETF analyst James Seyffart said the rationale in Yorkville’s statement “doesn’t make a ton of sense,” arguing that the differences between a ’33 Act exchange-traded product and a ’40 Act ETF—such as reduced investor protections under the ’33 Act—are well known in the industry and not new factors.
Seyffart suggested the withdrawal could be driven by competitive pressure in the spot Bitcoin ETF market, pointing to Morgan Stanley’s recent MSBT product, which launched with a competitive fee of 14 basis points.
ETFs Extend Losing Streak
The change comes amid a broader slowdown in the crypto ETF sector as digital assets face continuing downward pressure. Spot Bitcoin ETFs have experienced significant outflows in recent weeks.
Data compiled by SoSoValue indicate these funds lost roughly $1 billion last week, and nearly $980 million more was redeemed in the first two days of the current week, underscoring the ongoing challenges for crypto-related investment products.