Trump Media seeks bitcoin ETF in latest move into crypto, with a company that could lead to conflicts of interest

By Bill PetersTruth Social Bitcoin ETF B.T. would list on the NYSE ArcaTrump Media and Technology Group Corp. on Thursday said it had filed a registration statement for an exchange-traded fund that would directly hold bitcoin - the latest move into cryptocurrency by people in President Donald Trump's orbit as his administration tries to deregulate the industry.Trump Media (DJT), which runs the social-media platform Truth Social, said that the cryptocurrency exchange Crypto.com would be the custodian of the fund, called Truth Social Bitcoin ETF B.T., which its registration statement refers to as a trust.If approved, shares of the investment vehicle would list on the NYSE Arca. Yorkville America Digital will acts as its sponsor.Yorkville America Digital is a subsidiary of Yorkville America, a Florida investment firm whose products are "centered around the digital-asset industry and Made in America businesses," according to the filing. Yorkville America has worked with Trump Media on other endeavors.Shares of Trump Media ticked up 0.1% in premarket trading on Friday, after dropping 8% on Thursday."The trust seeks to reflect generally the performance of the price of bitcoin before payment of the Trust's expenses and liabilities," the filing said."The shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in bitcoin rather than by acquiring, holding and trading bitcoin directly on a peer-to-peer or other basis or via a digital asset trading platform," it continued.The move to launch the fund follows the launch of similar bitcoin ETFs, including ones from big financial firms like BlackRock Inc. (BLK). Trump has also launched his own memecoin. World Liberty Financial, a crypto firm, also has ties to Trump and his family. Last month, Trump Media also said it wrapped up a deal to raise more than $2.3 billion to establish a bitcoin treasury reserve.Thursday's filing noted that Yorkville America, the parent company, has other business with Trump Media. Those relationships, the filing said, "could give rise to conflicts of interest that may negatively affect the trust and the shareholders.""For example, Yorkville has been selected by TMTG to advise it on the creation, implementation and operation of various investments and financial products for Truth.Fi, a platform designed to offer investment products aligned with 'America First' economic priorities," the filing said. Those products, it said, could include other exchange-traded instruments that could hold digital assets, such as bitcoin.The filing added that an affiliate of Yorkville had agreed to buy up to $2.5 billion in shares of Trump Media's stock, subject to certain limitations and conditions. Also, it said an affiliate company, Yorkville Securities, served as a co-placement agent in connection with a $2.44 billion private placement of Trump Media's securities in May, to be used to help set up the bitcoin treasury.Over the past 12 months, Trump Media's stock has fallen 56.3%.Bitcoin's price (BTCUSD) was last around $101,400, down about 3% over the past 24 hours, according to CoinMarketCap.com.-Bill PetersThis content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.