Trump Media and Technology Group has signed a binding agreement with Crypto.com to launch ETFs
The ETFs will focus on “Made in America” investments including digital assets and securities
Products will launch through Trump Media’s DeFi brand Truth.Fi, expected in 2025
Trump Media plans to invest some of its cash reserves in these ETFs
This is the latest in several crypto ventures by Trump and his family, including World Liberty Financial and American Bitcoin
Donald Trump’s media company is expanding into the cryptocurrency and financial services sector through a new partnership with a major cryptocurrency exchange. The deal represents another step in the growing relationship between the Trump business empire and digital assets.
Trump Media and Technology Group (TMTG), which operates the social media platform Truth Social, announced on April 22 that it has signed a binding agreement with cryptocurrency exchange Crypto.com and asset manager Yorkville America Digital. The partnership aims to launch exchange-traded funds (ETFs) with a “Made in America” focus.
These ETFs are expected to include both digital assets and securities from various American industries, including energy. The funds will be launched through TMTG’s decentralized finance brand, Truth.Fi, and will be available through Crypto.com’s broker-dealer, Foris Capital.
Expanding into Financial Services
The planned ETFs are subject to regulatory approval and are expected to launch later in 2025. This agreement finalizes a non-binding deal that was initially signed between the companies in March.
Trump Media plans to invest some of its own cash reserves into these ETFs. The company will be using up to $250 million that is custodied by Charles Schwab, following a partnership agreement established with the bank in January.
The US law firm Davis Polk will be advising on the development and launch of these financial products. Along with the ETFs, Trump Media plans to launch a number of Truth.Fi Separately Managed Accounts.
“We look forward to bringing ETFs to the market for investors who believe both the American economy and digital assets are poised for tremendous growth,” said Devin Nunes, CEO of Trump Media, in a press release.
Trump Family’s Growing Crypto Portfolio
This venture is just the latest crypto-related business involving Trump and his family. The Trump family has quickly established multiple ventures in the cryptocurrency space, gaining hundreds of millions of dollars in value through these initiatives.
In October, the Trumps helped launch a crypto platform called World Liberty Financial, which has a linked token and plans for a stablecoin. President Trump’s sons, Eric Trump and Donald Trump Jr., have also started a crypto mining venture called American Bitcoin.
Other crypto ventures include Trump NFTs and a meme coin. The rapid expansion into cryptocurrency represents a major shift for the Trump business empire, which was traditionally focused on real estate, hotels, and golf courses.
The Trump Organization announced in January that the president’s investments, assets, and business interests, including his $2.7 billion stake in Trump Media, would be held in a trust managed by his children. According to the announcement, Donald Trump will play no role in day-to-day operations or decision-making of these businesses.
Market Impact and Existing Products
Crypto.com’s native token, Cronos (CRO), surged 12% after the company announced the deal with Trump Media, reaching $0.09. However, the exchange token remains down 90% from its 2021 all-time high of just under a dollar.
In the broader market, spot Bitcoin ETFs in the US have seen a turnaround in institutional interest, with more than $1 billion in aggregate inflows so far this week as crypto markets rebounded. This follows several weeks of outflows as the wider market experienced a downturn.
There are already several ETFs with investment strategies that align with Trump’s policy objectives. The largest of these is the American Conservative Values ETF, which has $110 million in assets and was launched in October 2022. Another example is the God Bless America ETF, which describes itself as “an investment for God-fearing, flag-waving conservatives” and has assets of $79.4 million.
No ETF filings for the new Trump Media products have yet appeared on the Securities and Exchange Commission website. On March 27, Crypto.com said the SEC had informed it that the agency had officially closed a 2024 investigation into the company and would file no enforcement action against it.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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