Trump-backed truth social pulls bids for crypto ETFs

Asset manager Yorkville America has requested to withdraw multiple crypto exchange-traded funds applications filed on behalf of the Donald Trump-backed Truth Social after changing its product strategy.

Yorkville America said Tuesday that it is moving away from offerings registered under the Securities Act of 1933, such as the proposed Truth Social Bitcoin ETF, to structures under the Investment Company Act of 1940, saying the shift would enable it to offer more innovative products while benefiting from stronger investor protections and tax efficiencies. 

Yorkville America’s Truth Social Bitcoin & Ethereum ETF and Truth Social Crypto Blue Chip ETF were also withdrawn. The asset management firm said it “initiated this process after determining the '40 Act framework provides a structure for delivering the differentiated, rules-based investment strategies the firm continues to develop for its growing investor base.”

Yorkville America’s request to withdraw its Truth Social Bitcoin ETF. Source: SEC

The firm, known for “America First”-themed investment products, gave no indication it would pursue a crypto ETF under the ‘40 Act framework. Yorkville is the financier and asset manager for Trump Media & Technology Group (TMTG), which is behind Truth Social.

The withdrawals come amid ongoing concerns that Trump’s ties to the crypto industry, and the financial interests stemming from them, are conflicting with his duties as the US president.

Democratic senators have been pressing for answers ever since Trump was inaugurated in January 2025, particularly regarding his role with the World Liberty Financial crypto platform.

Crypto ETFs have struggled this year

It also comes as demand for crypto ETFs has cooled in 2026 amid a broader crypto market pullback. 

Net inflows into US spot Bitcoin (BTC) ETFs in 2026 currently sit at $790 million as of Tuesday, mostly concentrated in the BlackRock-issued iShares Bitcoin Trust ETF (IBIT) and are only a fraction of the $25 billion that inflowed in 2025. 

Spot Ether (ETH) ETFs have also struggled to maintain investor interest, recording $640 million in net outflows, while new altcoin ETFs have not captured the same demand at launch as their predecessors. 

However, Bloomberg ETF analyst James Seyffart suspected Yorkville America’s decision to pull out of the crypto ETF market may have been due to the competitive landscape for Bitcoin ETFs, particularly with the new Morgan Stanley Bitcoin Trust ETF carrying a market-low fee of 0.14%.

The crypto ETFs were intended to be part of TMTG's broader crypto strategy, which included the launch of the Truth.fi financial platform last year.

Yorkville America’s product offerings range from American-themed funds spanning defense, security and energy, as well as tech and real estate.

Products issued under the ’40 Act are typically mutual funds and ETFs designed for diversified, regulated investment strategies, while ’33 Act structures are commonly associated with spot commodity and crypto-style ETF products.