Yorkville America, an asset management firm, has decided to withdraw several crypto ETF applications expected to be registered under the Truth Social brand, supported by Donald Trump. The company stated it has shifted its product strategy and now prefers to operate under the Investment Company Act of 1940, which offers stronger investor protection, rather than the Securities Act of 1933. This is reported by Cointelegraph.com reports .
As a result of this decision, projects such as the TruthSocial Bitcoin ETF, TruthSocial Bitcoin & Ethereum ETF, and TruthSocial Crypto Blue Chip ETF have been halted. According to Yorkville America representatives, the new legal framework provides broader opportunities for tax efficiency and the development of innovative investment strategies. However, the company did not clarify whether it intends to relaunch crypto ETF projects under the new system.
The withdrawal of the applications comes at a time of heightened concerns regarding potential conflicts of interest between Donald Trump's ties to the crypto industry and his duties as U.S. President. Democratic senators have been demanding explanations regarding Trump's role in the World Liberty Financial platform since his inauguration in January 2025.
Additionally, a significant decline in demand for crypto ETFs in 2026 may have influenced this decision. This year, net inflows into U.S. spot Bitcoin ETFs totaled only $790 million, compared to $25 billion in 2025. Ethereum ETFs saw an outflow of $640 million.
Experts, particularly Bloomberg analyst James Seyffart, believe that Yorkville America was also forced to retreat due to intense market competition. For instance, new funds like the Morgan Stanley Bitcoin Trust offer very low fee rates of 0.14%, making competition difficult for Truth Social projects.
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