Truth Social, a social network controlled by Trump Media & Technology Group, a media conglomerate owned by current US President Donald Trump, has officially cancelled its plans to launch a spot cryptocurrency exchange-traded fund (ETF). According to an official notice submitted to the US Securities and Exchange Commission (SEC), the investment advisor and project sponsor, Yorkville America, has withdrawn three relevant registration forms, which were filed back in the summer of 2025. This decision completely cancels preparations for the launch of funds based on Bitcoin, a combined instrument based on the first cryptocurrency and Ethereum, and a diversified ETF focused on the most capitalized digital assets.

The holding company's official reason for this decision was the impracticality of conducting a public offering of shares under current market conditions. Independent experts, including Bloomberg analyst James Seyffarth, attribute this move to the fierce competition in the spot Bitcoin ETF sector, which intensified following the recent debut of a fund from financial giant Morgan Stanley, which offered investors record-low commissions. Amid market saturation and aggressive price-dumping by traditional Wall Street heavyweights, launching new niche products has become commercially unjustified.

An additional negative factor impacting the company's strategy was its own disappointing financial performance. In early May 2026, Trump Media released its first-quarter financials, posting a hefty $406 million net loss. Notably, the vast majority of this loss—approximately $368.7 million—was due to unrealized losses from the revaluation of digital assets and securities held by the media giant.

Similar depressing dynamics have also affected other blockchain initiatives associated with the presidential family. American Bitcoin (ABTC), a mining company co-founded by Eric Trump, reported a quarterly loss of $81.8 million, also due to a deep decline in the value of its cryptocurrency. An even more critical situation has developed around AI Financial, which manages the WLFI token reserves for the family's crypto project, World Liberty Financial. The organization lost over $270 million, leading management to openly question the company's ability to continue operations and remain viable over the next year.

The collapse of financial performance is exacerbated by a protracted decline in the market for tokens associated with the White House incumbent. Since the beginning of this year, the WLFI coin has depreciated by 57%, and its decline from its all-time peak in September 2025 has reached a catastrophic 86%. The flagship Official Trump coin (TRUMP) has also seen a similar 57% decline since January, with its current price 97% below its record highs set immediately after its launch.

Despite the obvious failures of his own commercial ventures in the crypto space, Donald Trump continues his attempts to massively transform government regulation of the industry. The day before, the president signed an executive order requiring the US Federal Reserve to radically revise the rules for granting fintech companies direct access to government payment gateways. This initiative is intended to modernize the country's regulatory framework and accelerate the full integration of digital assets into the traditional banking sector and payment systems of the United States.