Trump Media's TruthFi Launches Crypto ETFs Targeting Retail Investors

Donald Trump's media company is moving deeper into the financial sector, striking a deal with Crypto.com to launch a series of exchange-traded funds (ETFs)

Donald Trump's media company is expanding further into the financial sector with a partnership with Crypto.com to launch a series of exchange-traded funds (ETFs) and digital asset products.

Trump Media and Technology Group (TMTG) (NYSE:TMTG), through its fintech subsidiary TruthFi, will introduce an array of crypto-related investment products.

This venture marks the latest stage of TMTG’s expansion into the financial services sector.

Shares of TMTG surged more than 9% immediately after the announcement, while Crypto.com's native token, Cronos (CRO), soared over 30% in the past 24 hours.

The partnership will see the ETFs and TruthFi Separately Managed Accounts (SMAs) being launched with an initial investment of up to $250 million from TMTG.

The company plans to fund this investment using its cash reserves, with Charles Schwab (NYSE:CVS) providing custody and oversight services.

Foris Capital US LLC, a broker-dealer affiliated with Crypto.com, will be facilitating the offering of the ETF products.

These investment vehicles will concentrate on digital assets and securities, focusing on the "Made in America" theme across various industries including energy and technology.

Set to launch later this year, pending regulatory approval, these products will be accessible to investors in the U.S., Europe, and Asia through existing brokerage and trading platforms.

Trump has become a surprising ally of the crypto industry since assuming office in January, rapidly building a small empire in the sector.

While Trump's real estate ventures were a mainstay of his career, his recent pivot toward digital assets has attracted significant attention.

Several businesses affiliated with Trump, including some linked to his family members, have been rapidly expanding, with some reaching valuations in the hundreds of millions.

One of the most prominent ventures is World Liberty Financial, headed by Trump's sons, which has generated $550 million in sales and is actively investing in various decentralized finance (DeFi) tokens.

Earlier this year, TMTG launched its fintech division, TruthFi, aiming to capitalize on the crypto boom.

This move signaled Trump's broader ambitions in the financial sphere, building on his presidency's strong pro-crypto stance to fuel the company's expansion.

Despite the potential for conflicts of interest and the close involvement of Trump's family members, there have been no serious efforts to scrutinize the venture.

While Trump's involvement in the crypto space has sparked some controversy, particularly following the launch of his memecoin, his financial ventures in digital assets have yet to be subject to any significant political or administrative challenges.