Trump Media and Crypto.com Announce Partnership to Launch Crypto ETFs

The partnership was first announced late last month, but it was only finalized Tuesday through a binding agreement, paving the way for the upcoming launch of exchange-traded funds (ETFs) that include crypto assets.

The partnership between Trump Media & Technology Group (TMTG) and Crypto.com was announced last month, and it is now entering a new phase with the finalization of a binding agreement on Tuesday. This partnership will see the launch of exchange-traded funds (ETFs) that include crypto assets, marking a significant step for both parties.

According to a joint announcement by the companies, the ETFs will be made available through Foris Capital U.S. LLC., which is Crypto.com’s broker dealer. These ETFs will comprise "digital assets as well as securities with a Made in America focus spanning diverse industries such as energy."

If everything proceeds smoothly, especially with the regulatory process, the digital asset ETFs may be launched later this year, while the U.S. ETFs could follow in early 2024.

"This agreement is a major step forward in diversifying TMTG into financial services and digital assets. We're gratified to work with great partners, Crypto.com and Yorkville America Digital, and look forward to bringing ETFs to the market for investors who believe both the American economy and digital assets are poised for tremendous growth," TMTG CEO Chairman Devin Nunes said in a statement.

In addition to the ETFs, the partner firms are also planning to launch a series of "Truth.Fi Separately Managed Accounts (SMAs)." These accounts will offer investors unique investment strategies tailored to specific market segments and investment objectives.

TMTG will be investing in the ETFs and SMAs through its own cash reserves, further expanding its financial portfolio.

"We are pleased to be working with TMTG and Foris Capital to bring this exciting new product to investors," said Kris Marszalek, CEO of Crypto.com. "This partnership is a testament to Crypto.com's commitment to driving innovation in the financial services industry."

For many crypto users on X, the partnership is a major milestone in the crypto space, considering how a U.S. president's media company has gone big on crypto collaboration.

“Still can't believe it. Is this a dream? Pls tell me this is a dream. I will burst into flames if it isn't. We are going to get MEGA bundles of CRO if this happens. I'm scooping up all the MAGA coins in the process. Finally, some good news.”

“Congrats!!! Let's make $CRO great again… let's do it for #CROfam!! 🔥🚀”

“I was wondering why Kris was a little quiet for some time while others are making noise… quietly building behind the scenes then bam! Solid news. Let’s $CRO!”

The partnership between TMTG and Crypto.com is a significant development for both companies. For TMTG, it marks a key diversification initiative as it expands beyond its core media and entertainment offerings into the rapidly growing financial services sector.

For Crypto.com, the partnership provides an excellent opportunity to expand its footprint in the U.S. market with its own branded ETFs. Crypto.com has been expanding its product offerings and geographic reach in recent years, and the launch of its ETFs in the U.S. is a logical next step in its growth strategy.

The partnership is also a testament to the increasing convergence of the traditional finance and digital asset industries. As the lines between these two sectors continue to blur, we can expect to see more partnerships and collaborations like this one in the years to come.

Trump isn't part of TMTG's management leadership, but he is a major shareholder of the company, and his son, Donald Trump Jr., is a member of the board.

Many crypto fans reacted to the news, with some sharing their thoughts on the partnership.

The U.S. president has yet to make a comment on the partnership. He has not promoted any other cryptocurrency except his own meme coin, Official Trump (TRUMP), but he did express support for the broader crypto space.

Trump has also signed an executive order that establishes a national strategic Bitcoin reserve, as well as a digital assets stockpile.

The president has embraced crypto since securing his second presidency. In the first month of his presidency, Bitcoin hit an all-time high, but volatility remains across the vast majority of cryptocurrencies due to various economic factors, including Trump's trade war.