The Trump-affiliated company withdrew its filing as analysts cite rising competition and fee pressure in the Bitcoin ETF space.
Truth Social has withdrawn its application for a spot Bitcoin ETF, according to market analysts. The move follows heightened competition in the sector, particularly after Morgan Stanley launched its own product with a 14-basis-point fee.
The decision suggests challenges in securing approval for spot Bitcoin ETFs, which have faced regulatory scrutiny. Analysts indicate Truth Social may explore alternative structures, such as a crypto ETF under the Investment Company Act of 1940, for greater flexibility.
No immediate market reaction was reported following the withdrawal announcement.