Trump Media & Crypto.com to Launch ETFs
Trump Media and Crypto.com Partner to Launch ETFs
Trump Media & Technology Group (TMTG), the parent company of Truth Social and Truth.Fi, has announced a non-binding agreement with Crypto.com to launch a series of exchange-traded funds (ETFs) in the US. This partnership, subject to regulatory approval, aims to bring to market ETFs focused on digital assets and securities with a "Made in America" emphasis.
ETF Details and Launch Plans
The ETFs are slated for launch later this year via Crypto.com's broker-dealer, Foris Capital US LLC. Crypto.com will provide the necessary infrastructure and custody services. Potential underlying assets include major cryptocurrencies like Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, and Cronos (CRO).
The companies anticipate broad international distribution, reaching users in the US, Europe, and Asia through various brokerage platforms. Crypto.com CEO Kris Marszalek stated that the ETFs will be available on the Crypto.com App to their over 140 million users globally.
This initiative will coincide with the launch of Truth.Fi Separately Managed Accounts (SMAs), which TMTG intends to invest in using its cash reserves.
Political and Regulatory Considerations
The announcement comes amidst ongoing scrutiny of President Trump's involvement in various crypto ventures. Democratic lawmakers have raised concerns about potential conflicts of interest between his presidential duties and his business dealings, citing the Trump Organization's ownership of the World Liberty Financial crypto platform and the launch of the TRUMP memecoin.
- House Representative Gerald Connolly criticized the TRUMP token, calling it a "money grab" that generated over $100 million in trading fees.
- Representative Maxine Waters described the TRUMP token as a "rug pull," representing the "worst of crypto."
These criticisms highlight the regulatory and ethical complexities surrounding this latest venture. The success of these ETFs will depend heavily on navigating these concerns effectively and gaining regulatory approval.
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