Truth Social has withdrawn its spot Bitcoin ETF filing, according to Bloomberg ETF analyst James Seyffart, who flagged the move as likely driven by intensifying fee competition in the space. Morgan Stanley's recently launched MSBT entered the market at a 14-basis-point fee — a level that squeezes margin for any new entrant without an established distribution network or brand advantage in asset management.
Seyffart suggested the withdrawal may not be a full retreat from crypto products. Instead, Truth Social could pivot toward a more flexible crypto ETF structure under the Investment Company Act of 1940, which would allow a broader basket of digital assets rather than a single-asset spot product.
For investors, the read is straightforward: the spot Bitcoin ETF market is consolidating around well-capitalised incumbents, and late-stage filers face a structurally harder path to meaningful…
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