Trump Media and Technology Group (TMTG) and Crypto.com Will Launch Exchange-Traded Funds

Trump Media and Technology Group (TMTG) and Crypto.com will launch exchange-traded funds and products through its Truth.Fi brand. Crypto.com's

The former president's company is also planning to launch a first-of-its-kind ETF basket of cryptocurrencies, including CRO and BTC, and securities. The funds, subject to regulatory approval, are slated to go live later this year and will be available globally, including in the U.S., Europe and Asia.

“We are proud to be working with Trump Media & Technology Group to bring these innovative ETF products to market,” said Kris Marszalek, CEO of Crypto.com. “This partnership marks a significant milestone in our journey to provide cutting-edge financial solutions to a global audience. To the best of our knowledge, the proposed MAGA / Trump ETF will be the world’s first ETF with $CRO, the native token of Crypto.com.”

However, Marszalek's statement has sparked mixed reactions. On-chain investigator ZachXBT expressed his skepticism towards the partnership and pointed out that the majority of the community had voted against increasing the supply of CRO by burning 70 billion tokens.

"This would be a KEY concern as it would INCREDIBLY increase the circulating supply of $CRO (by 200%)," ZachXBT noted.

Moreover, ZachXBT highlighted that Trump Media could have partnered with other exchanges like Coinbase, Kraken, or Gemini, but chose Foris Capital instead.

"After 70 billion tokens were burned and the majority of the community voted AGAINST increasing the supply, it seems like Foris Capital, a broker-dealer subsidiary of Crypto.com, will be applying for an ETF with $CRO and BTC, according to the filing," the post reads.

Earlier this year, Trump Media filed trademark requests for several financial investment products targeting U.S. businesses and cryptocurrency markets. The move marked the company’s first significant foray into the financial sector.

The company is planning to launch a range of investment products, including a Bitcoin ETF, an ETF basket of cryptocurrencies and securities, and an ETF focused on U.S. industrial companies. The company is also planning to launch a series of investment funds, which will be maintained by Charles Schwab in a trust capacity.

These funds will be structured as "rolling trusts," with each trust having a limited life of one year. After the year is up, the assets in the trust will be distributed to the fund's investors and a new trust will begin.

The company is aiming to specialize its funds in Bitcoin and other U.S.-based industrial activities. The move is in response to investor demand for new investment opportunities.

"We are seeing strong interest from investors in both Bitcoin and U.S. energy and manufacturing companies," said an executive at Trump Media. "We believe that these funds will provide investors with a unique and valuable way to diversify their portfolios."

The company's plans are still pending regulatory approval.