- Truth Social withdrew its Bitcoin and Ethereum ETF filings as Yorkville shifted toward a ’40 Act fund structure.
- Bitcoin traded near $77,000 as ETF outflows, macro pressure, and defensive derivatives positioning shaped market sentiment.
Trump Media & Technology Group’s Truth Social has withdrawn its applications for two crypto exchange-traded funds as Bitcoin trades near a key support area around $77,000. The move comes during a weaker stretch for crypto markets, with spot Bitcoin ETFs seeing heavy outflows and traders watching whether the coin can hold its current range.
Truth Social filed requests with the U.S. Securities and Exchange Commission to withdraw its Form S-1 registration statements for the Truth Social Bitcoin ETF and the Truth Social Bitcoin & Ethereum ETF. The company filed both applications in June 2025, but its latest filing says it will not pursue the public offering at this time.
Trump-Linked Truth Social Withdraws Spot Bitcoin ETF Filing
Bloomberg ETF analyst James Seyffart noted that Truth Social has withdrawn its spot Bitcoin ETF filing. He suggested the decision may reflect intensifying competition in spot Bitcoin ETFs, especially after Morgan… pic.twitter.com/pNBZ03uZDd
— Wu Blockchain (@WuBlockchain) May 20, 2026
Yorkville America, the sponsor and investment adviser for the proposed funds, said the withdrawal supports a revised ETF strategy. The firm now sees better options under the Investment Company Act of 1940, commonly known as the ’40 Act, rather than the Securities Act of 1933, known as the ’33 Act.
The ’33 Act mainly covers the public sale of securities, while the ’40 Act governs investment companies, fund structures, operations, and investor protections. Yorkville said the ’40 Act framework can support more differentiated investment strategies, along with more transparency, tax efficiency, and access for investors.
However, analysts also point to a tougher spot Bitcoin ETF market. Bloomberg analyst James Seyffart linked the withdrawal to rising competition, especially after Morgan Stanley launched MSBT with a 14-basis-point fee. The fund has already attracted more than $230 million in inflows, placing pressure on newer or delayed ETF products.
Spot Bitcoin ETFs have become one of the strongest fund categories since the SEC approved them in January 2024. The group has drawn more than $57.7 billion in cumulative inflows. Even so, recent redemptions show that institutional demand can weaken fast when Bitcoin loses momentum near major technical levels.
Bitcoin ETF Outflows Add Pressure Near $77,000
Bitcoin has slipped toward the $76,000 to $77,000 support area after failing to hold gains near $83,000. ETF flows have also turned negative, with nearly $650 million leaving Bitcoin funds at the start of the week and more than $1 billion in redemptions recorded during the previous week.
The selling does not appear limited to one fund. ARKB and IBIT each recorded over $310 million in outflows, showing that the pressure has spread across major products. That pattern points to broader risk reduction among institutional investors as macro concerns weigh on digital assets.
Bitcoin short-term holders have also sold more aggressively after BTC failed to reclaim their cost basis near $81,000. Still, some market observers say the current decline does not show full capitulation. Bitcoin’s Fear and Greed Index has moved from fear back toward neutral territory. That makes the current move look more like repositioning than a market-wide panic.
The halving cycle now gives traders another reference point. Bitcoin sits fewer than 100,000 blocks from its next mining reward halving, expected around April 2028. Past bear markets often ended 12 to 18 months before a halving, which places a possible cycle bottom window as early as October.
K33 Research also says this bear market looks different from earlier downturns. The firm noted that derivatives traders remain unusually cautious, with negative funding rates lasting for 81 straight days. That defensive positioning may limit the risk of a leverage-driven crash like those seen in 2014, 2018, and 2022.
K33 still sees elevated open interest and ETF outflows as risks. However, its base case holds that Bitcoin’s February drop near $60,000 marked the deepest drawdown of the cycle.
