Trump Media and Technology Group has partnered with Crypto.com to launch ETFs under its Truth.Fi brand, integrating digital assets and securities with a focus on American industries, pending regulatory approval.
Strategic Alliance for Crypto ETFs
Trump Media and Technology Group Corp. (TMTG) has entered a non-binding agreement with Crypto.com to introduce a series of exchange-traded funds (ETFs) under its FinTech brand, Truth.Fi. The collaboration marks a significant expansion into digital assets and securities with an emphasis on American-made industries, including energy.
Alongside the ETFs, TMTG plans to launch Truth.Fi Separately Managed Accounts (SMAs). The company intends to invest in both ETFs and SMAs using up to $250 million from its own reserves, which will be custodied by Charles Schwab. This move aligns with TMTG’s broader financial services and FinTech strategy.
Crypto.com To Oversee
The ETFs, facilitated by Crypto.com’s broker-dealer Foris Capital US LLC, will feature a diversified portfolio of cryptocurrencies, including Bitcoin and Cronos, alongside traditional securities. Crypto.com will oversee the technological infrastructure, provide custody, and supply the underlying digital assets for these financial products.
Crypto.com CEO Kris Marszalek expressed enthusiasm for the partnership, highlighting the significance of introducing a unique ETF basket that includes Crypto.com’s native token, Cronos (CRO).
He claimed,
“These ETFs will give consumers more options from a brand with a loyal following. Once launched, these ETFs will be available on the Crypto.com App for our more than 140 million users around the world.”
Global Availability and Regulatory Compliance
The ETFs are slated for launch later this year, pending regulatory approval and a finalized agreement. They will be accessible internationally across multiple regions, including the United States, Europe, and Asia, through established brokerage platforms.
TMTG Chairman and CEO Devin Nunes emphasized the initiative’s focus on “America First investment products” designed to support innovative technologies and U.S.-based businesses.
He stated,
“We aim to create inventive funds incorporating firms that concentrate on rapid growth, technological innovation, and strengthening the U.S. economy.”
Political and Market Implications
The partnership emerges as former U.S. President Donald Trump continues to advocate for pro-crypto policies. His administration recently announced an executive order establishing a strategic reserve for confiscated cryptocurrency holdings and exploring budget-neutral methods for acquiring crypto assets.
Despite Trump’s active engagement with digital assets, including the launch of his own memecoin, $TRUMP, market reception has been volatile, with the token experiencing a sharp decline since its debut.
As TMTG and Crypto.com move forward with their ETF plans, the venture reflects growing institutional interest in digital assets, with potential regulatory shifts playing a crucial role in shaping the future of crypto-backed investment products.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Credit: Source link
