Trump Media Withdraws Bitcoin and Bitcoin-Ethereum ETF Applications
Trump Media & Technology Group, the parent company of Truth Social, has withdrawn its applications for Bitcoin and Bitcoin-Ethereum ETFs. The company cited a shift in regulatory strategy, planning to pursue a different framework under the '40 Act instead of the '33 Act. However, Bloomberg analyst James Seyffart suggested the withdrawal may be due to intense fee competition in the spot Bitcoin ETF market. Morgan Stanley's MSBT, launched in April, has attracted $266.72 million in assets with a 0.14% expense ratio, undercutting rivals. The U.S. spot Bitcoin ETF market has seen $57.4 billion in inflows since January 2024. The move comes amid political scrutiny of Trump's crypto ventures, including NFTs, the TRUMP meme coin, and World Liberty Financial.
Key facts
- Trump Media withdraws spot Bitcoin and dual Bitcoin-Ethereum ETF applications.
- Company cites regulatory strategy shift to '40 Act from '33 Act framework.
- Bloomberg analyst suspects competitive fee pressure after Morgan Stanley's MSBT launch.
- U.S. spot Bitcoin ETFs have attracted $57.4 billion in cumulative inflows.
- Trump's crypto ventures face ongoing political scrutiny from Democrats.