Trump Media Partners Crypto.com for Crypto ETFs

Trump Media and Technology Group has announced a partnership with Crypto.com to launch a series of cryptocurrency exchange-traded funds (ETFs). The collaboration aims to introduce ETFs that will hold a variety of cryptocurrencies, including Bitcoin, Ethereum, Solana, Cronos (CRO), and XRP. Initially, Crypto.com mentioned three specific ETFs on its social media platform, but the post was later modified to highlight a unique ETF basket comprising CRO and other crypto assets.

Trump Media's release emphasized that the ETFs would focus on "securities with a Made in America focus spanning diverse industries such as energy." These funds will be accessible through Crypto.com’s broker-dealer, Foris Capital US. The exact products that the companies plan to file for remain unclear, as further details were not provided despite inquiries.

In February, Trump Media applied for trademarks for Truth.Fi-branded ETFs and SMAs with labels such as “Made in America,” “US Energy Independence,” and “Bitcoin Plus.” Yorkville Advisors is set to act as the registered investment advisor (RIA) for these vehicles. The partnership with Crypto.com, which provides custody and supplies the crypto assets for the ETFs, aligns with Trump's meeting with Crypto.com CEO Kris Marszalek in December.

Nate Geraci, president of The ETF Store, commented on the venture, noting potential conflicts of interest due to the regulatory environment but acknowledging Trump's commitment to crypto. James Seyffart of Bloomberg Intelligence expressed interest in the development but highlighted the lack of actual filings, suggesting that they might appear in the coming months. Samir Kerbage, CIO of Hashdex, noted that the move by Trump Media and Crypto.com is not surprising, given the growing interest in the crypto space.

Hashdex, a Brazil-based asset manager, has experience in creating crypto index ETFs abroad and aims to bring similar exposure to the US market. Their Hashdex Nasdaq Crypto Index US ETF, launched last month, currently holds Bitcoin and Ethereum. Hashdex is in discussions with the SEC’s crypto task force to determine which additional crypto assets could be included in such ETFs. Kerbage envisions a future where US crypto index ETFs could hold hundreds of assets with a combined market cap in the tens of trillions of dollars, predicting that Bitcoin will be widely used but not the most valuable crypto asset in society.