Trump Media Partners Crypto.com for New ETFs

Trump Media and Technology Group Corp. (TMTG), the entity behind the social media platform Truth Social, has revealed plans to collaborate with Crypto.com to introduce a range of exchange-traded funds (ETFs) and exchange-traded products (ETPs) through its financial services arm, Truth.Fi. These ETFs, which will be accessible via Crypto.com’s broker dealer Foris Capital US LLC, are set to include a blend of digital assets and securities, with a particular emphasis on American industries such as energy. Crypto.com will supply the necessary backend technology, custody, and cryptocurrencies for the ETFs, which are expected to feature a distinctive basket of cryptocurrencies, including Bitcoin and Cronos.

The ETFs are scheduled to launch later this year, pending the finalization of a definitive agreement and regulatory approval. Once available, they will be accessible internationally, including in the United States, Europe, and Asia, through existing platforms and brokerages. TMTG CEO and Chairman Devin Nunes highlighted the significance of this partnership, stating that the new investment products will support innovative crypto ventures, American companies, and advanced technologies. He underscored that the funds will align with principles that promote superior U.S. companies focused on their core businesses, free from political interference.

Kris Marszalek, co-founder and CEO of Crypto.com, also expressed excitement about the collaboration, noting that the ETFs will offer consumers more choices from a brand with a dedicated following. The ETFs will be available on the Crypto.com App, which has over 140 million users globally. The ETFs are planned to launch alongside a series of Truth.Fi Separately Managed Accounts (SMAs). Both the ETFs and SMAs are integral to TMTG's financial services and FinTech strategy, which involves utilizing up to $250 million to be custodied by Charles Schwab.

TMTG's overarching mission is to challenge Big Tech's dominance over free speech by opening up the Internet and empowering individuals to express their views freely. The company operates Truth Social, a social media platform designed as a sanctuary for free expression, and Truth+, a TV streaming platform offering family-friendly live TV channels and on-demand content. The introduction of Truth.Fi, a financial services and FinTech brand featuring America First investment vehicles, is part of TMTG's broader strategy to offer innovative financial products to its users.

Crypto.com, established in 2016, is trusted by over 140 million customers worldwide and is dedicated to accelerating the adoption of cryptocurrency through innovation. The company aims to empower the next generation of builders, creators, and entrepreneurs to develop a more equitable digital ecosystem. The partnership between TMTG and Crypto.com is anticipated to introduce a new array of investment options to the market, leveraging the strengths of both companies to provide cutting-edge financial products to a global audience.

This potential ETF launch represents another crypto-related venture involving former US President Donald Trump. However, it has sparked concerns about conflicts of interest between Trump’s presidential duties and the Trump Organization’s ownership of the crypto platform, World Liberty Financial, as well as the Official Trump (TRUMP) memecoin, which launched three days before his inauguration. House Representative Gerald Connolly has referred to the TRUMP token as a “money grab” that has allowed Trump-linked entities to cash in on over $100 million worth of trading fees. Democrat Maxine Waters also criticized Trump’s memecoin, describing it as a rug pull and the “worst of crypto.”