Trump Media Teaming Up With Crypto.com to Launch ETFs

Trump Media and Crypto.com plan to launch exchange-traded funds mixing cryptocurrencies and American-focused assets, pending regulatory approval.

News of Trump Media & Technology Group public trading is displayed on television screens at the Nasdaq Marketplace, on March 26, 2024. Michael M. Santiago/Getty Images

President Donald Trump’s media company Trump Media & Technology Group (TMTG) and Crypto.com announced plans to introduce a series of exchange-traded funds (ETFs) under the Truth.Fi brand on Mar. 24.

The companies say these funds will include both cryptocurrencies and non-crypto assets. The effort involves Yorkville America, which is joining as a partner to support the creation and launch of these new products.

An ETF is an investment vehicle that can hold a range of assets. According to Vanguard, a company that also offers ETFs, an exchange-traded fund “is a collection of hundreds or thousands of stocks or bonds, managed by experts, in a single fund that trades on major stock exchanges, like the New York Stock Exchange, Nasdaq, and Chicago Board Options Exchange.”

TMTG’s version will combine traditional holdings, such as U.S.-based stocks, with cryptocurrencies such as bitcoin and cronos (CRO), the native token of Crypto.com. TMTG hopes to draw on its existing audience from Truth Social, the social media platform it runs, and other services under the Trump Media umbrella.

In its announcement, TMTG says these funds will be designed to reflect “America First” values by focusing on domestic businesses.

“We aim to create inventive funds incorporating firms that concentrate on rapid growth, technological innovation, and strengthening the U.S. economy, unencumbered by woke nonsense and political posturing,“ Devin Nunes, TMTG’s CEO and chair, said in the announcement. ”Investors will finally have options that adhere to their principles and that support superior U.S. companies precisely focused on their core businesses.”

TMTG said the new ETFs will be available internationally, including in the United States, Europe, and Asia, once regulators give the green light.

Crypto.com will handle the technology behind the scenes. The company also plans to provide custody, or secure storage, of the cryptocurrencies.

Users may buy these ETFs through Crypto.com’s broker dealer, Foris Capital US LLC, if they live in an approved area.

Kris Marszalek, co-founder and CEO of Crypto.com, said, “We are proud to partner with Truth Social (DJT) and Yorkville America, and to support the launch of these new ETFs, including the first of its kind basket of tokens including CRO.”

TMTG said these ETFs will appear alongside new separately managed accounts (SMAs). Both the ETFs and SMAs are part of TMTG’s growing financial services arm, which they are calling Truth.Fi.

TMTG’s board authorized investing up to $250 million in these products and other vehicles, with cash reserves exceeding $700 million at the end of last year.

Shares of TMTG (under the ticker symbol DJT) rose by 10.5 percent in after-hours trading on Monday but have fallen by 38 percent over the past 12 months.

The groups say they will soon file the required documents with the Securities and Exchange Commission. When approved, the ETFs will become available to Crypto.com’s reported user base of more than 140 million people.

The partnership aims to offer investors an alternative set of funds that combine mainstream equities with digital assets. The launch is planned for later this year, subject to final agreements and regulatory review.

Reuters contributed to this report.