Why Trump's bitcoin ETF plans likely collapsed before getting off the ground
Trump Media scrapped its Truth Social bitcoin and ethereum ETF plans after withdrawing SEC filings, citing a crowded market with fees collapsing to 14 basis points. Analysts blame weak demand—the firm's existing ETFs attracted just $30 million—and fierce competition from major players like Morgan Stanley. The withdrawal signals challenges for new entrants in the saturated spot bitcoin ETF space.
Key takeaways
- 1Trump Media withdrew bitcoin and ethereum ETF filings after its five existing ETFs attracted only $30 million since late 2025 launch.
- 2Spot bitcoin ETF fees have collapsed to 14 basis points, making new entrants uncompetitive without differentiated strategies.
- 3Major Wall Street firms like Morgan Stanley now offer ultra-low-cost bitcoin ETFs, creating barriers for newcomers in the crowded market.
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Why it matters
This signals that retail crypto investing via ETFs is consolidating around major institutional players, making it harder for new platforms to gain traction. For Indian investors considering crypto exposure through similar fund structures, this demonstrates the importance of fee comparison and the dominance of established financial institutions in the crypto ETF space.
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