Cronos Surges 18% on Trump Media Partnership News

Trump Media and Crypto.com have announced a partnership to launch a series of ETFs and ETPs, which will include digital assets such as Bitcoin, Cronos, and others. The ETFs are expected to focus on securities with a "Made in America" theme, spanning diverse industries. However, the announcement clarified that these ETFs still require regulatory approval and that a definitive agreement has not yet been finalized.

Despite the significant obstacles to implementing the stated program, Cronos surged by over 18% due to speculative interest and bullish momentum. This surge comes after a period of decline for Cronos, which reached a yearly high in December following reports of a meeting between the Crypto.com CEO and the US President, as well as a legal resolution with the SEC.

Crypto.com, a major exchange and issuer of the Cronos token, has been through several changes recently. Although the value of Cronos fell dramatically at the end of 2024, the exchange has ventured into new markets. The partnership with Trump Media Group triggered a bullish cycle for the Cronos token, as the announcement hinted at a potential Cronos ETF.

However, the SEC may be looking favorably on altcoin ETFs, but one based on Cronos is totally out of left field. Even if the US President personally intervenes, a Cronos ETF may still be months away. There haven’t been any ETF applications for the altcoin yet. Another concern is the "Made in America" angle. Although the statement discusses US-based products, Crypto.com is currently headquartered in Singapore. The US is still the exchange’s primary target market.

The biggest problem, however, is that a Cronos ETF could be the biggest political crypto scandal since the TRUMP token. US Presidents are not supposed to conduct private business in any capacity, especially with foreigners. Could Trump’s firm expect to win the SEC’s highest stamp of approval? Even if it did, wouldn’t that impact the Commission’s own legitimacy?

Overall, it’s evident that Trump Media is venturing deeper into the crypto industry and looking to extend its investment avenues. Such a partnership will also help the exchange increase its market share in the US and challenge Coinbase’s dominance.