Trump Media and Crypto.com forge ETF partnership: A political and financial gamble

• Trump Media & Technology Group (TMTG) signed a nonbinding agreement with Crypto.com to launch “America First” ETFs, blending digital assets and U.S.-focused traditional securities. TMTG’s stock surged 9% after the news.
• President Donald Trump, once skeptical of crypto, now embraces it—his campaign accepts crypto donations, and his ventures have launched NFTs and memecoins. The ETFs align with conservative finance, rejecting “woke” corporate policies.
• The proposed funds (targeting late 2025) will include cryptocurrencies (e.g., Bitcoin, Cronos), U.S.-centric stocks (e.g., energy sector) and TMTG-managed accounts. They’ll be marketed globally via Crypto.com’s platform under TMTG’s Truth.Fi brand.
• Analysts are skeptical due to TMTG’s $400M 2024 loss and Truth Social’s weak performance. The crypto ETF market is already competitive, and SEC approval is uncertain.
• The venture tests whether political branding can drive investment success. Its outcome may influence future politically aligned financial products. Regulatory decisions will be pivotal.

In a move that blends politics, finance and digital assets, Trump Media & Technology Group (TMTG) has announced a nonbinding agreement with cryptocurrency exchange giant Crypto.com to launch a series of exchange-traded funds (ETFs) under the banner of “America First” investing. The partnership, if finalized, could mark one of the most politically charged financial products in recent memory—and investors are already reacting.

Shares of TMTG (Nasdaq: DJT) surged nearly 9% in after-hours trading following the announcement, offering a much-needed boost to a stock that had fallen 38% year-to-date before the news broke. The proposed ETFs, expected to include both digital assets and traditional securities with a “Made in America” focus, could debut as early as late 2025, pending regulatory approval.

A marriage of politics and finance

The partnership underscores President Donald Trump’s deepening ties to the cryptocurrency industry—a notable shift from his earlier skepticism. In 2019, Trump famously tweeted that he was “not a fan” of Bitcoin and other cryptocurrencies, calling them “based on thin air.” But in recent years, his stance has softened, with his campaign accepting crypto donations and his family launching Trump-branded NFTs and memecoins.

Now, with this ETF venture, Trump Media is positioning itself at the intersection of conservative finance and digital asset adoption. TMTG CEO Devin Nunes framed the initiative as a rejection of “woke nonsense” in corporate America, stating: “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.”

The ETFs will be marketed under TMTG’s new fintech brand, Truth.Fi, and will be available globally—including in the U.S., Europe and Asia—via Crypto.com’s platform, which boasts over 140 million users.

What’s in the ETFs?

According to the announcement, the funds will feature:

• A basket of cryptocurrencies, including Bitcoin and Crypto.com’s native token, Cronos (CRO).
• Traditional securities with a focus on U.S.-based companies, particularly in sectors like energy.
• Separately Managed Accounts (SMAs), which TMTG plans to invest in using its own cash reserves.

Crypto.com CEO Kris Marszalek emphasized the appeal of the Trump brand, stating: “These ETFs will give consumers more options from a brand with a loyal following.”

The move mirrors Trump’s long-standing business model—licensing his name to third-party ventures while letting partners handle operations. Crypto.com will provide custody, technology and regulatory compliance, while TMTG lends its branding and political messaging.

Regulatory hurdles and market skepticism

Despite the initial stock bump, analysts remain cautious. TMTG reported a staggering $400 million loss in 2024 on just 3.6 million in revenue, raising questions about its financial sustainability. The company’s primary asset, Truth Social, has struggled to compete with mainstream platforms, and its foray into ETFs is seen by some as a bid to diversify revenue streams.

Moreover, the crypto ETF space is already crowded. The SEC’s approval of spot Bitcoin ETFs earlier this year opened the floodgates for institutional investment, but competition is fierce. A Trump-branded ETF may attract his political base, but whether it can gain broader traction remains uncertain.

Why this matters

This partnership is more than just a financial product—it’s a test of whether political branding can drive investment flows. If successful, it could inspire similar ventures from other politically aligned firms. If it fails, it may reinforce skepticism about mixing partisan messaging with financial markets.

For now, all eyes are on regulators. The SEC has taken a cautious approach to crypto ETFs, and any delays or rejections could derail the project. But if approved, these funds could become a litmus test for the future of politically charged investing.

As one Wall Street analyst quipped: “This might be the first ETF where the biggest risk isn’t market volatility—it’s the news cycle.”

Sources include:

JustTheNews.com

GlobalNewsWire.com

CNBC.com