Truth Social Withdraws Spot Bitcoin ETF Application Amid Market Competition

According to Bloomberg ETF analyst James Seyffart, Truth Social withdrew its spot Bitcoin ETF application on May 20. The company cited regulatory differences between 33 Act ETPs and 40 Act ETFs as justification, but Seyffart characterized the reasoning as "not particularly compelling," noting such distinctions are well-established in the crypto ETF space.

Seyffart attributed the withdrawal to intensifying competition in the spot Bitcoin ETF market, particularly following Morgan Stanley's launch of MSBT with a fee rate of just 14 basis points. He noted the market may not need another spot Bitcoin ETF, but indicated Truth Social may pursue differentiated crypto-related strategies using 40 Act fund structures instead.