Truth Social crypto ETF bids withdrawn as Yorkville shifts to ’40 Act
Yorkville America has withdrawn three Truth Social crypto ETF bids tied to Trump Media’s “Truth Social Funds” plans: a Truth Social Bitcoin ETF, a Truth Social Bitcoin & Ethereum ETF, and a Truth Social Crypto Blue Chip ETF.
The issuer said it is moving from Securities Act of 1933 (’33 Act) strategies to an Investment Company Act of 1940 (’40 Act) structure. Yorkville President Steve Neamtz framed this as a switch in fund design—focused on a rules-based framework, regular disclosure, and independent oversight—without confirming a new crypto ETF will launch immediately under the ’40 Act.
For crypto traders, the timing matters. Spot Bitcoin ETF demand is reportedly weakening, with about $1B in net outflows in the week ended May 15, following a prior six-week inflow streak. Ethereum ETFs also saw meaningful outflows. With crypto ETF momentum delayed and broader ETF flows soft, the near-term effect is more likely to reduce bullish catalysts for BTC and ETH rather than create them.
Key keyword check: crypto ETF is now paused, while the ’40 Act shift suggests future product repricing and timing risk for the crypto ETF complex.
Bearish
The withdrawal of three Truth Social crypto ETF bids delays potential new product catalysts for BTC/ETH, and it comes as ETF demand is already softening. With spot Bitcoin ETFs reportedly flipping to net outflows and Ethereum ETFs seeing sizable outflows, traders are likely to face reduced near-term bullish momentum. The ’40 Act shift may improve governance and disclosures, but it does not confirm an immediate relaunch, so the market impact is more about timing risk than structural upside. Overall, this combination points to a near-term negative bias for BTC and ETH price action rather than a clear reversal signal.