Trump Media & Technology Group likely abandoned plans for its bitcoin exchange-traded funds (ETFs) because the economics no longer worked.
ETF analysts say the company behind Truth Social has been faced with 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 U.S. Securities and Exchange Commission for the “Truth Social Bitcoin ETF” and the “Truth Social Bitcoin & Ethereum ETF,” effectively ending plans to launch the funds.
The company described the move as a “structural reset” designed to help it create the right investment products for investors. But analysts who track the ETF market say competitive pressure is the most likely reason.
“The first five Truth Social ETFs have received mixed reception, attracting just over $30 million in combined assets since their launch in late 2025,” Nate Geraci, president of NovaDius Wealth Management, told CoinDesk.
“This lukewarm investor response may have deterred 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 fees for the Bitcoin ETF already as low as 14 basis points, the Truth Social Bitcoin ETF likely would have been “a dead man walking,” he said.
Pressure on fees has intensified in recent months as major Wall Street firms have expanded into crypto products. Morgan Stanley recently launched a Bitcoin ETF charging 14 basis points, one of the cheapest offerings on the market.
This 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 highlighted the differences between products registered under the Securities Act of 1933 and funds structured under the Investment Company Act of 1940.
“But that doesn’t make much sense to me,” Seyffart wrote. “Of course, a 33-deed ETP is different than a 40-deed ETF and it offers fewer protections. Everyone in this space knows that. Nothing has changed.”
Instead, Seyffart said he suspects “it was more due to the competitive landscape of spot bitcoin ETFs.”
He added that Trump Media can still pursue crypto-related funds under an Act 40 structure, which allows issuers to develop more flexible strategies using derivatives, income products or actively managed portfolios.
“I mean, do we really need a 14th place Bitcoin ETF? Seyffart wrote. “But something that can be more differentiated makes sense.”
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, directly highlighted the fee war.
“My guess: the Yorkville guy told Truth ppl after MSBT that they either had to go below 14 basis points or might as well forget about it,” Balchunas wrote on X. “No one will buy it, and that might be embarrassing.”
Some crypto observers have speculated that the withdrawal may have been linked to political scrutiny of the Trump family’s crypto projects or negotiations related to the CLARITY Act. Seyffart told CoinDesk that he did not believe these concerns drove the decision.
