Trump Media & Technology Group has likely abandoned plans for its bitcoin exchange-traded fund (ETF) because the economy no longer worked.
ETF analysts say the company behind Truth Social faced a brutal reality: the spot market for bitcoin ETFs has become crowded, fees have collapsed and investors already have more than a dozen similar products to choose from.
This week, Trump Media withdrew registration statements with the US Securities and Exchange Commission for the “Truth Social Bitcoin ETF” and the “Truth Social Bitcoin & Ethereum ETF,” ending plans to launch the funds.
The company described the move as a “structural reset” designed to help it build the right investment products for investors. But analysts who follow the ETF market say competitive pressure was the more likely cause.
“The first five Truth Social ETFs have received a lukewarm reception and have attracted just over $30 million in combined assets since their launch in late 2025,” Nate Geraci, president of NovaDius Wealth Management, told CoinDesk.
“The tepid investor response may have kept the firm from entering a highly competitive category where it would face some of the world’s largest asset managers and well-established crypto-native ETF issuers,” Geraci said. With spot bitcoin ETF fees already as low as 14 basis points, the Truth Social Bitcoin ETF likely would have been “a dead man walking,” he said.
Fee pressure has intensified in recent months as major Wall Street firms expanded into crypto products. Morgan Stanley recently launched a bitcoin ETF that charges 14 basis points, one of the cheapest offerings on the market.
It raised the bar for any new entrant trying to gain traction.
Bloomberg Intelligence ETF analyst James Seyffart questioned Trump Media’s explanation for the withdrawal. On X, Seyffart said the company pointed to differences between products registered under the Securities Act of 1933 and funds structured under the Investment Company Act of 1940.
“But it doesn’t make much sense to me,” Seyffart wrote. “Obviously a 33 Act ETP is different from a 40 Act ETF and it has less protection. Anyone in this room knows that. Nothing has changed.”
Instead, Seyffart said he suspects “it has more to do with the competitive landscape of spot bitcoin ETFs.”
He added that Trump Media can still pursue crypto-related funds under a ’40 Act structure, which allows issuers to build more flexible strategies using derivatives, income products or actively managed portfolios.
“I mean, do we really need a 14th spot bitcoin ETF?” wrote Seyffart. “But something that can be more differentiated makes sense.”
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, pointed directly to the fee war.
“My guess: Yorkville guy told Truth ppl after MSBT that they either need to get below 14bp fees or you might as well forget it,” Balchunas wrote on X. “No one will buy it and it could be embarrassing.”
Some crypto watchers speculated that the withdrawal may have been linked to political scrutiny of the Trump family’s crypto dealings or to negotiations linked to the CLARITY Act. Seyffart told CoinDesk that he doesn’t believe those concerns drove the decision.
