- Trump Media’s shares surge following announcement of ETF collaboration with Crypto.com.
- The deal involves launching a series of ETFs and related products under the Trump brand.
What happened: Trump Media ETF deal with Crypto.com
Shares of Trump Media experienced a significant jump in after-hours trading on Monday, following the announcement of a deal with Crypto.com to launch a series of exchange-traded funds (ETFs) and related products. The agreement mirrors Trump’s previous licensing deals, where other companies utilise the Trump brand to roll out products.
According to reports, the stock had been down 38% for the year as of Monday’s close, but it surged about 9% in extended trading after the announcement. The ETFs and exchange-traded products are set to have a “Made in America” focus and are expected to launch later this year, subject to regulatory approval.
This marks President Trump’s latest foray into the crypto space, following the introduction of Trump-branded non-fungible tokens (NFTs) and memecoins by his family, as well as plans to start a crypto bank. The funds will be marketed under Trump Media’s newly launched fintech brand, Truth.Fi, with Crypto.com and its U.S. affiliate, Foris Capital, handling the backend technology and supply of cryptocurrencies.
The ETFs are expected to include a unique basket of digital assets such as Bitcoin and Cronos (Crypto.com’s native token), alongside traditional securities from various industries, including energy.
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Why it’s important
The announcement of the ETF deal between Trump Media and Crypto.com is significant for several reasons. Firstly, it represents a strategic move by Trump Media to diversify its revenue streams through the crypto market, leveraging the popularity and loyalty of the Trump brand.
This collaboration could potentially attract a broader investor base interested in both the Trump brand and cryptocurrency investments. Secondly, the deal further blurs the line between the president’s business ventures and his policy agenda, raising questions about potential conflicts of interest.
Additionally, the launch of these ETFs could have broader implications for the crypto industry, as it brings a well-known political figure into the fold, potentially influencing public perception and regulatory scrutiny. Finally, the international availability of these ETFs, including in Europe and Asia, highlights the global reach of this partnership and its potential impact on the global crypto market.
