Trump Media and Crypto.com Partnership
Trump Media, an American media and technology firm backed by US President Donald Trump, has signed a partnership agreement with Crypto.com exchange. Through the partnership, Trump Media will launch a series of Exchange-Traded Funds (ETFs), focused on cryptocurrencies and some securities.
The Trump Media and Crypto.com Alliance
As revealed in a press release, the partnership deal between Trump Media and Crypto.com also includes Yorkville America Digital, an asset management firm. In addition to the ETFs, the firms will launch crypto-based Exchange-Traded Products (ETPs) through the Truth.Fi brand. The deal follows a non-binding agreement, signed by the parties in March. According to the new agreement, Davis Polk & Wardwell LLP will serve as advisor on developing and launching the products. The Trump Media ETFs will debut through Crypto.com’s broker-dealer, Foris Capital US LLC.
The products expected to comprise digital assets and securities will be Made in America-focused and span diverse industries like energy. The funds are expected to go live later this year upon successful regulatory approval. While the funds will focus on the US, they will become available across existing platforms and brokerages in other jurisdictions, including Europe and Asia.
According to the press release, the ETFs launch alongside several of Truth.Fi Separately Managed Accounts (SMAs). Trump Media has unveiled plans to invest in ETFs and SMAs through its cash reserves.
These financial products form part of the firm’s FinTech strategy, in which it plans to allocate $250 million of its cash reserves for diverse investment vehicles. This investment strategy incorporates Charles Schwab into a partnership, which provides a role as custodian and advisory expert.
The agreement between Truth Media and Crypto.com comes after the former announced plans to launch the Truth․Fi Bitcoin Plus ETF in January. As we covered in our report, this initiative is part of a broader effort to provide investors with opportunities that reflect the US government’s priorities. Trump’s new administration focuses on energy independence, manufacturing growth, and Bitcoin adoption.
Prospect on Bitcoin Price
The Truth.Fi ETF initiative could drive broader Bitcoin adoption and strengthen institutional interest. This development may further legitimize Bitcoin as an investment asset.
Notably, the launch of Bitcoin ETFs in January 2024 catapulted Bitcoin to new record highs. As demand increased due to the surging institutional interest, supply reduced, leading to surges in the price of BTC. Many expect this pattern to repeat once the Truth.Fi ETFs officially debut. Moreover, the involvement of Crypto.com further adds credibility to the new investment instruments.
BTC was trading at $90,718, demonstrating a 3.2% increase over the previous day. The trading volume surged over 26% within the same period, reflecting growing investors’ interest.
In our last update we examined, crypto analyst Credible Crypto forecasted a 200% price rally for Bitcoin. He cited the increased BTC accumulated from Long Term Holders (LTH) to back his forecast.