Yorkville America has announced the withdrawal of several crypto exchange-traded fund applications linked to Truth Social, a platform backed by former President Donald Trump. This decision comes as the firm shifts its strategy from offerings under the Securities Act of 1933 to those governed by the Investment Company Act of 1940, aiming to enhance investor protections and tax efficiencies.
The asset manager's retraction includes the proposed Truth Social Bitcoin ETF, along with the Truth Social Ethereum ETF and the Truth Social Crypto Blue Chip ETF. Yorkville emphasized that the new framework would allow for more innovative investment strategies tailored to its growing base of investors. The firm, closely associated with Trump Media & Technology Group, has not indicated plans to pursue any crypto ETFs under the new regulatory structure.
Concerns regarding Trump's ties to the crypto sector have been mounting, with Democratic senators seeking clarity on his involvement since his inauguration in January 2025. The crypto ETF landscape has also faced challenges in 2026, with net inflows into US spot Bitcoin ETFs plummeting to $790 million, significantly down from $25 billion in 2025.