Trump Media and Crypto.com just signed an agreement to launch ETFs

Trump Media & Technology Group Corp. (TMTG), the media firm majority-owned by President Donald Trump, has signed a binding agreement to enter the exchange-traded fund (ETF) market. In collaboration with Crypto.com and Yorkville America Digital, TMTG will debut its financial products under its FinTech brand Truth.Fi.

According to a joint statement published Tuesday, the ETFs and exchange-traded products (ETPs) are expected to blend exposure to digital assets with US-based securities. The funds will focus on sectors aligned with an “America-First” investment philosophy, spanning industries such as energy and technology. 

Subject to regulatory approval, these products could roll out later this year through Crypto.com’s US broker-dealer subsidiary, Foris Capital US LLC.

TMTG and Crypto.com to launch ETFs

The agreement, if successful, could become Trump Media’s first major move toward becoming a financial services provider. Until now, the company’s operations have leaned towards the social media platform Truth Social, the streaming service Truth+, and its fintech division Truth.Fi. TMTG Chairman and CEO Devin Nunes said the partnership will help the entity realize its ambitions in finance.

“This agreement is a major step forward in diversifying TMTG into financial services and digital assets. We’re gratified to work with great partners, Crypto.com and Yorkville America Digital, and look forward to bringing ETFs to the market for investors who believe both the American economy and digital assets are poised for tremendous growth,” Nunes remarked.

The binding agreement follows a memorandum of understanding signed between the three entities in March. Davis Polk & Wardwell LLP advises all parties on the deal’s legal and regulatory aspects.

According to Kris Marszalek, co-founder and CEO of Crypto.com, the partnership will help the financial firm merge decentralized digital assets and traditional finance markets, which aligns with TMTG’s plans. 

“Crypto.com is the leading platform to bridge crypto and traditional finance, and this agreement is a testament to those capabilities,” Marszalek explained. “This partnership gives the Trump Media ETFs global distribution powered by the Crypto.com platform. It’s a win for Trump Media, Crypto.com, CRO, and Yorkville America Digital.”

Alongside the ETF offerings, Truth.Fi is preparing to launch a series of Separately Managed Accounts (SMAs), which are also set to debut later this year. TMTG has earmarked up to $250 million from its internal cash reserves to invest directly in the proposed investment vehicles. 

Short-selling controversy still clouds Trump Media

TMTG is still embroiled in a controversy involving short-selling activity. The firm recently asked the US Securities and Exchange Commission (SEC) to investigate a substantial short position in its stock by Qube Research & Technologies, a hedge fund based in Europe.

According to a filing with Germany’s federal gazette, Bundesanzeiger, Qube disclosed a $105 million short position in Trump Media shares last week. In response, TMTG submitted a memo to the SEC on April 17, claiming that the position could involve “suspicious activity.”

The company also alleged that there may be “indications of illegal naked short selling of DJT shares,” which is explicitly banned in US financial markets and punishable by law. In the memo, TMTG asked regulators to launch an immediate investigation and share their findings with the company and any relevant civil or criminal enforcement agencies.

“We urge you to immediately investigate this suspicious trading and report your findings back to TMTG and any relevant civil and criminal authorities,” the memo stated.

Still, earlier this week, Qube told Reuters that a quantitative model drives its trading activity and does not reflect “a specific view on the company’s fundamentals.”

Meanwhile, questions of conflicts of interest stemming from Trump’s majority stake in the media firm continue to cloud the US president. “There are no conflicts of interest,” said White House spokesperson Anna Kelly in an emailed statement.

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