Trump-linked Truth Social has pulled its Bitcoin ETF holdings, surprising many in the crypto market. The move was confirmed after Yorkville America Equities released several ETF registration statements from the US Securities and Exchange Commission (SEC) on May 19, including Truth Social Bitcoin ETF, Bitcoin & Ethereum ETF, and Crypto Blue Chip ETF.
The notes were originally issued between June and July 2025, but Yorkville now says it wants to switch to crypto trading products built under the Investment Company Act of 1940 instead of the traditional “33 Act” ETF. According to the company, the 1940 Act provides strong investor protection, flexibility, and access to business capital.
Heat the Race
Bloomberg ETF analyst James Seyffart said the real reason may be competition. He said that the Bitcoin ETF market has become very crowded, especially after Morgan Stanley launched the MSBT ETF with a very low 14-basis-point fee.
Seyffart questioned Yorkville’s explanation, saying that the difference between the 33 Act and the 40 Act was already known in the market. In fact, he said that the economics of launching another Bitcoin ETF would not make sense.
He added that Truth Social can now focus on the more flexible and different things related to cryptocurrencies instead of trying to compete in an already crowded field with Bitcoin ETFs.
Market Results Pour Out
Bloomberg analyst Eric Balchunas says that after looking at Morgan Stanley’s investment prices, Truth Social may have realized that it needed to be set up with very low fees or risk investing.
Meanwhile, crypto commentator Tony Edwards called the withdrawal “good news,” while crypto developer Wendy O said the timing was not right for the stock.
Despite the removal, Yorkville insists that it is not leaving crypto behind. The president of the company Steve Neamtz said that the company is “moving forward with a very strong platform,” saying that new crypto ETF products may arrive in the future according to the revised schedule.
Meanwhile, the bid for Truth Social’s spot Bitcoin ETF has been suspended.
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