Truth Social has withdrawn its application for a spot Bitcoin ETF amid intensifying competition and significant market outflows. The withdrawal, confirmed by Yorkville America, the asset manager behind the ETF, was filed with the SEC on May 19. The company plans to pursue a structure under the Investment Company Act of 1940 instead. The decision comes as spot Bitcoin ETFs experienced nearly $1 billion in outflows over two trading sessions, with BlackRock's iShares Bitcoin Trust ETF alone seeing $325 million in net outflows. Analysts suggest that the withdrawal reflects mounting competitive pressure, particularly following Morgan Stanley's recent ETF launch with a low management fee. Despite the outflows, analytics firm Santiment indicates that such market conditions could signal a potential bullish reversal for Bitcoin.