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Trump Media Partners with Crypto.com to Launch ETFs
In a significant development, shares of Trump Media surged approximately 9% during after-hours trading on Monday following the announcement of a collaboration with Crypto.com to create a series of exchange-traded funds (ETFs) and associated products.
The company, known for operating the Truth Social platform, has faced considerable challenges this year, with its stock plummeting 38% before the recent uptick, despite President Donald Trump’s anticipated return to political prominence.
According to the press release issued on Monday, the upcoming ETFs and related products will emphasize a “Made in America” approach, with plans for their debut later this year, pending regulatory approvals. This venture marks another step into the cryptocurrency arena for Trump, who has previously launched Trump-branded non-fungible tokens (NFTs) and memecoins, and has expressed intentions to establish a crypto bank.
The latest announcement also serves to intertwine Trump’s business endeavors with his political agenda, raising questions about the implications of such overlaps.
As the majority owner, Trump has a significant stake in Trump Media, which currently holds a market capitalization of about $4.6 billion. However, the company continues to struggle financially, reporting a loss of $400 million in 2024 with only $3.6 million in revenue.
The responsibility for the development of the new ETFs primarily lies with Crypto.com and its U.S. affiliate, Foris Capital. This partnership is characteristic of Trump’s business strategy, where he often invites other entities to leverage his brand for product development.
Kris Marszalek, CEO of Crypto.com, emphasized the advantages of associating with a “brand with a loyal following” in the official statement regarding the collaboration.
The new funds will be marketed under TMTG’s fintech initiative, Truth.Fi. The partnership entails that the crypto exchange will provide back-end technology support, custody services, and the necessary cryptocurrencies for the ETFs, which are expected to feature a diverse portfolio of digital assets, including Bitcoin and Crypto.com’s native token, Cronos, alongside traditional financial securities from various sectors, such as energy.
If successfully launched, these ETFs will be accessible globally, including in regions like Europe and Asia, via major brokerage platforms and the Crypto.com app, which boasts an extensive user base of 140 million worldwide.
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