BlockBeats News, May 20th, Bloomberg ETF analyst James Seyffart revealed that Donald Trump's social media platform Truth Social has withdrawn its spot Bitcoin ETF application. Seyffart stated that the reason given in the official press release was "not very convincing." He pointed out that there is already a regulatory distinction between a 33 Act ETP and a 40 Act ETF at the protection level, which is common knowledge in the crypto ETF market, and there has been "no new change."

He believes that the more likely reason is that the spot Bitcoin ETF market competition has become extremely intense, especially after Morgan Stanley launched MSBT with a fee of only 14 basis points, further squeezing the market space.

Seyffart also mentioned that Truth Social seems to still plan to launch a more flexible crypto-related ETF strategy using a 40 Act fund structure. He said: "Does the market really need the 14th spot Bitcoin ETF? But more differentiated products still make sense."