Trump’s company withdraws applications to launch cryptocurrency ETFs

Yorkville America, the sponsor and investment advisor of the Truth Social funds, has withdrawn applications to launch cryptocurrency ETFs submitted to the US Securities and Exchange Commission (SEC). The regulator received the relevant documents recently.

The applications were submitted in the summer of 2025. Trump Media & Technology planned to launch three products at once: a spot bitcoin ETF, a fund with combined exposure to bitcoin and ether, and ETFs for three cryptocurrencies — Solana, XRP, and Cronos.

Yorkville America explained the withdrawal of applications by the desire to change the legal structure of future products. The company intends to abandon the model based on the Securities Act of 1933 and move to the rules of the Investment Company Act of 1940. According to company representatives, this will allow for «more flexible investment strategies while strengthening investor protection mechanisms.»

However, Bloomberg analyst James Seyffarth has a different version of events. In his opinion, the real reason for Trump Media’s retreat is the fierce competition in the spot bitcoin ETF market. The launch of a crypto fund by Morgan Stanley in early May, which offered investors a commission of 0.14%, which is lower than the market rate, added additional pressure on new market players.

Meanwhile, financial problems are also plaguing related structures of Trump’s crypto empire. AI Financial, a company associated with Donald Trump’s World Liberty Financial project, reported a loss of $ 271.5 million for the first quarter of this year and warned of the risk of bankruptcy.