Donald Trump’s social platform; Truth Social, has submitted an application for a Bitcoin exchange-traded fund (ETF). It follows a dramatic market flip where Bitcoin ETFs have seen record outflows of $1.21 billion in three days.
Bitcoin ETFs Record Outflows
Bitcoin ETFs experienced net outflow of $1.21 billion, the first billion-dollar outflow since March, according to data from SosoValue. As much as $268 million was taken out by Tuesday alone. Institutional investors’ rebalancing techniques are behind the trend, analysts explain, and stale prices for Bitcoin.
Although there were exits, the Bitcoin derivatives market remains upbeat. The futures contracts are upbeat with a funding rate of 0.0038%, indicating that the majority of traders still expect the price to increase.
Truth Social’s Strategic Move
Truth Social’s filing, submitted to NYSE Arca, is seeking United States Securities and Exchange Commission (SEC) approval for listing the “Truth Social Bitcoin ETF.” The fund will track the price of Bitcoin and will be sponsored by Yorkville America Digital, a digital asset manager. The move follows a series of strategic pushes in digital assets from Trump Media & Technology Group (TMTG).
TMTG had earlier sought trademarks for various Bitcoin investment items and intended to create a $2.5 billion “Bitcoin treasury.” This will position TMTG as a highly dominating player in the cryptocurrency market.
Regulatory Review and Market Implications
The SEC would have 240 days from the January 29, 2026, ruling date to reject or approve Truth Social’s request for the ETF. Approval. would enable trading on the New York Stock Exchange and thus make investing in Bitcoin easier.
Witnesses describe how the entry of Truth Social into the cryptocurrency market has the ability to bring conservative investors into the market, and in doing so, shift the demographic balance of investment in cryptocurrency. This ETF filing is seen as part of a bigger trend of technology companies and media companies entering cryptocurrency products.
As institutional investors consider their approach anew, the imminent SEC review will establish the tone. Where money, politics, and the media converge, everyone will be looking on as the market continues to transform.
