9
Truth Social, a social media platform linked to US President Donald Trump, has made an unexpected move.
Accordingly, Trump-linked Truth Social withdrew its spot Bitcoin (BTC) ETF application.
Bloomberg senior ETF analyst James Seyffart stated in a post on his X account that Truth Social has withdrawn its spot Bitcoin ETF application.
This decision may have been influenced by the recent increase in competition in the spot Bitcoin ETF market.
According to Seyffart, this specifically pointed to Morgan Stanley’s MSBT fund entering the market with a 14 basis point fee.
Seyffart also added that Truth Social could instead pursue a more flexible crypto ETF structure under the Investment Companies Act 1940.
Truth Social’s financial partner, Yorkville America, has stated that it has been asked to withdraw its applications for three cryptocurrency ETFs.
The funds withdrawn are from the Truth Social Bitcoin ETF, the Truth Social Bitcoin & Ethereum Blend ETF, and the Crypto Blue Chip ETF.
The company cited changes in its regulatory framework as the reason for the withdrawal, while the crypto sector points to concerns about a potential conflict of interest with President Trump and a decrease in demand for crypto ETFs.
Yorkville America also added that the withdrawal was a strategic move to reapply under a more efficient securities framework.
*This is not investment advice.
coindesk.com
