Yorkville America has withdrawn multiple cryptocurrency exchange-traded fund (ETF) applications filed on behalf of Trump Media & Technology Group, the company behind Truth Social, as the asset manager shifts regulatory frameworks and market conditions weaken crypto ETF demand in 2026. The withdrawals include the Truth Social Bitcoin ETF, Truth Social Bitcoin & Ethereum ETF, and Truth Social Crypto Blue Chip ETF. According to Yorkville America, the move reflects a transition from products registered under the Securities Act of 1933 to investment structures governed by the Investment Company Act of 1940, which the company states will provide more flexibility for creating rules-based investment strategies while offering stronger investor protections and potential tax advantages. The decision comes as US crypto ETF demand has contracted sharply compared to 2025, with the broader market experiencing a period of competitive intensity and slowing investor appetite.
Regulatory Framework Shift
Yorkville America explained that the Investment Company Act of 1940 structure—commonly referred to as the "40 Act"—was determined to be better suited for the firm's long-term goals and expanding investor base. The company did not specify whether it plans to refile any crypto-related ETF applications under the new framework. The shift reflects a strategic decision to prioritize regulatory flexibility and investor protections over the previous filing approach.
Market Slowdown in 2026
The withdrawals occur during a significant contraction in the US crypto ETF market. Current net inflows for US spot Bitcoin ETFs stand at roughly $790 million in 2026, a sharp decline from approximately $25 billion that flowed into these products in 2025. Spot Ethereum ETFs have also struggled, recording net outflows during the year, and newly launched altcoin ETFs have failed to generate comparable enthusiasm to earlier crypto investment products.
[Image: Recent Bitcoin ETF flows chart from Farside Investors]
Competitive Pressures
Bloomberg ETF analyst James Seyffart suggested that Yorkville America's decision may have been influenced by the highly competitive Bitcoin ETF market, where firms compete on fees and investor incentives. Morgan Stanley's recently launched Bitcoin Trust ETF introduced one of the lowest management fees in the sector at 0.14%, exemplifying the competitive fee compression affecting the market.
[Image: X post from James Seyffart on ETF competition]
The Truth Social ETF products were originally expected to form part of Trump Media's expansion into digital finance through its Truth.fi platform.
