Why Trump’s bitcoin ETF plans likely collapsed before getting off the ground
Trump Media withdrew its bitcoin ETF filing as analysts pointed to fee pressure, weak demand and fierce competition in the crowded spot bitcoin ETF market.
What to know:
- Trump Media & Technology Group scrapped plans for its Truth Social bitcoin and bitcoin-and-ether ETFs after withdrawing SEC registration statements this week.
- ETF analysts say the decision was driven less by structural concerns and more by a crowded spot bitcoin ETF market, collapsing fees and weak demand for Trump Media’s existing funds.
- With major firms like Morgan Stanley offering spot bitcoin ETFs at fees as low as 14 basis points, analysts argued a Truth Social bitcoin ETF would struggle to attract assets unless it offered a clearly differentiated strategy.
This week, Trump Media withdrew registration statements with the U.S. Securities and Exchange Commission for the “Truth Social Bitcoin ETF” and “Truth Social Bitcoin & Ethereum ETF,” ending plans to launch the funds.
The company described the move as a “structural reset” designed to help it build the right investment products for investors. But analysts following the ETF market say competitive pressure was the more likely reason.
“The first five Truth Social ETFs have received a lukewarm reception, attracting just over $30 million in combined assets since their launch at the end of 2025,” Nate Geraci, president of NovaDius Wealth Management, told CoinDesk.
“That tepid investor response may have dissuaded 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 bitcoin ETF fees already as low as 14 basis points, the Truth Social Bitcoin ETF would likely have been “a dead man walking,” he said.
