Trump’s Truth Social Withdraws Bitcoin ETF Filing Amid $648M Outflow

Trump Media’s proposed bitcoin ETF has been pulled from the U.S. Securities and Exchange Commission. The move comes after a big wave of outflows from spot Bitcoin ETFs, which saw combined withdrawals of $648.6 million on May 18.

Trump’s Truth Social Files For Bitcoin ETF Filing Withdrawal

In its filing with the SEC on May 19, the proposed Bitcoin ETF (Truth Social) submitted a request to withdraw its registration statement, filed under Form S-1. The company “has determined to withdraw the Registration Statement and not to pursue the public offering at this time,” the filing said.

Trump Media’s filing to the SEC’s Division of Corporation Finance and Office of Crypto Assets stated the registration statement has yet to be declared effective. Moreover, it confirmed that no securities have been sold in connection with the proposed ETF offering. In addition, the firm even ceased plans for its dual Bitcoin-Ethereum ETF.

The proposed fund was slated to be launched on Trump Media & Technology Group’s new spot Bitcoin ETF platform, Truth Social. The firm had been aiming to be a player in the fiercely competitive U.S. spot Bitcoin ETF space. Nonetheless, it also withdrew the crypto blue chip ETF it applied for earlier this year.

BTC ETF Outflows Surge

However, the exit coincides with a recent period of crazy crypto market volatility and a sharp drop in institutional demand for Bitcoin ETFs. U.S. spot Bitcoin ETFs experienced $648.6 million in net outflows on May 18, per Farside Investors data.

It spotlights one of the biggest withdrawals in recent weeks. For context, BlackRock’s IBIT suffered the largest loss in terms of outflows, losing $448.4 million. Fidelity’s FBTC followed suit and lost $63.4 million.

Meanwhile, ARKB recorded $109.6 million in withdrawals and Bitwise’s BITB recorded $9.2 million in outflows. Further losses were reported for a other issuers.

VanEck’s HODL Bitcoin ETF saw $7.6 million in outflows while Invesco’s BTCO saw $3.8 million in withdrawals. Franklin Templeton also suffered $6.6 million in withdrawals from its EZBC.

In particular, all the main spot Bitcoin ETFs saw negative inflows on May 18. A few funds, such as WisdomTree Bitcoin Fund (BTCW) and Valkyrie’s BRRR, saw zero movement during the day.