Truth Social Pulls Crypto ETF Application, Asset Manager Explains Amid Analyst Doubts
Recently, Truth Social, linked to Trump, has pulled its cryptocurrency ETF application, raising questions in the market about its strategic intentions.
The company's asset manager, Yorkville America, has withdrawn the registration statements for the Truth Social Bitcoin ETF, Truth Social Bitcoin and Ethereum ETF, and Truth Social Crypto Blue Chip ETF, which were submitted to the SEC in June 2025.
Yorkville America explained that this move was based on internal assessments, believing that the 1940 Investment Company Act framework better supports its differentiated investment strategies compared to the 1933 Securities Act.
The company's president, Steve Neamtz, stated that the 1940 Act framework offers better investor protection, greater operational flexibility, and broader institutional distribution channels;
as this framework covers board oversight, auditing, and fiduciary responsibility standards while expanding the utilization of brokerage and retirement platforms, potentially enhancing tax efficiency.
However, Bloomberg ETF analyst James Seyffart raised doubts, claiming that the intensifying competition in the ETF market might be the main reason behind the withdrawal.
Additionally, while products under the 1940 Act framework provide stronger investor protection, they entail higher operational costs and less flexibility, contradicting Yorkville's claim of "greater operational flexibility."
Overall, the Trump Media Group has been striving to diversify its revenue sources to reduce excessive reliance on advertising revenue from the Truth Social platform.
Nonetheless, Truth Social's sudden withdrawal of multiple cryptocurrency ETF applications is undoubtedly a heavy setback and adds uncertainty and challenges to the Trump Media Group's transformation and development.
#TruthSocial #加密ETF