What to know:
- Truth Social withdraws proposal for spot Bitcoin ETF in the face of growing competition in US crypto ETFs.
- Yorkville America also withdraws related filings and opts to pursue diversification under the 1940 Act.
- US spot Bitcoin ETFs demonstrate waning investor interest: $790M in 2026 net inflows compared to $25B in 2025.
Truth Social has withdrawn its proposed spot Bitcoin ETF filing, signaling a shift in strategy as competition intensifies across the United States crypto ETF market. Increasing pressure from lower-cost institutional products entering the rapidly evolving Bitcoin investment sector.
The withdrawal follows the launch of Morgan Stanley’s MSBT product, which introduced a management fee of 0.14%. Bloomberg ETF analyst James Seyffart reported the withdrawal, and issuers are using aggressive pricing strategies to compete and win over the Bitcoin ETF market share. Pricing is becoming more and more relevant due to waning demand from investors for crypto-related investment products in 2026.
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Yorkville America Revises Crypto Investment Structure
Yorkville America also withdrew filings relating to the Truth Social Bitcoin & Ethereum ETF and the Truth Social Crypto Blue Chip ETF. The company stated that it prefers the Investment Company Act of 1940 framework, describing it as better suited for developing diversified and rules-based digital asset investment strategies aimed at long-term institutional participation.
The Yorkville America-managed investment products are associated with Trump Media & Technology Group, which is the parent company of Truth Social. While the firm did not confirm future crypto ETF plans under the ’40 Act structure, analysts believe the change reflects broader efforts to adapt products to evolving regulatory and competitive market conditions in the United States investment industry.
The ETF filing withdrawals are taking place in the context of increased political pressure on President Donald Trump regarding his connections with cryptocurrency-related business ventures. Members of the Democratic Party have raised concerns about the possibility of conflicts of interest arising from Trump’s financial investments in digital assets, especially World Liberty Financial, as president since January 2025.
Bitcoin ETF Demand Weakens Across Market
Crypto ETF demand has significantly slowed during 2026 as institutional investors reduce exposure amid broader digital asset market volatility. The US spot Bitcoin ETFs have experienced net inflows of approximately $790 million in the year, sharply down from $25 billion in 2025, with most of the inflows coming from the BlackRock IBIT product.
The waning sentiment was further demonstrated through recent data showing net outflows. U.S.-listed Bitcoin ETFs experienced a total net outflow of $648.6 million on May 18. BlackRock’s IBIT was leading in net outflows with $448.4 million, followed by other competing funds such as Fidelity FBTC, ARKB, and Bitwise BITB.
Meanwhile, Bitcoin is trading at $76,813, with a 24-hour volume of $27.64 billion and a market capitalization of $1.54 trillion, holding 60.44% market dominance. The price has recorded a decline over the past 24 hours.
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