- Trump Media teams with Crypto.com to launch ETFs blending crypto and U.S.-focused traditional assets.
- Truth.Fi ETFs target energy, digital assets, and American industries with global investor access.
- TMTG plans to invest $250 million, with Charles Schwab as custodian and global distribution planned.
Trump Media and Technology Group (TMTG) has just made its first foray into the financial services sector, by signing an agreement with Crypto.com and Yorkville America Digital. This agreement will see all three entities combine forces to launch a series of ETFs under the Truth.Fi brand.
These funds are set to roll out sometime this year, and are aimed at offering investors a fresh blend of digital assets and traditional securities, around an “America-First” narrative. This alliance brings a political media brand, a major crypto firm and an asset management firm together, and things are about to get heated in several markets.
A First for Trump Media
The Donald Trump empire had dabbled in crypto here and there in the past.
However, this most recent move stands as a first for Trump Media itself. The company is best known for launching the Truth Social platform and its streaming service Truth+. It is now branching into the finance space with a new product line called Truth.Fi. This expansion is set to see the TMTG provide investors with access to ETFs and separately managed accounts (SMAs).
“These ETFs represent a major step forward in diversifying TMTG into financial services and digital assets,” CEO and Chairman of TMTG Devin Nunes said in the official announcement. “We’re excited to partner with Crypto.com and Yorkville America Digital to bring this vision to life.”
What’s in the ETFs?
Now, for the literal million-dollar question: What will these ETFs entail? According to reports, the planned ETFs will combine exposure to crypto and securities that are focused on American-based industries.
According to the trio, the investment strategy will span across sectors like energy, as well as other industries it deems important to the strength of the US economy. While the approval of these proposed funds still depend on the SEC for regulatory approval, the use of both crypto and trad-fi assets in one ETF structure is relatively new.
So far, the US Securities exchange has approved spot ETFs for crypto assets like Bitcoin and Ethereum, as well as trad-fi assets like gold. However, a blended ETF would be a new development and all eyes are on the players in this game.
Global Distribution, But America-First Focus
Despite being touted as an “America-First” product line, the new ETFs will not be limited to US investors alone. Instead, Foris Capital US LLC, Crypto.com’s broker-dealer arm, will be in charge of the product distribution. The ETFs will be available across regions outside the US like Europe and Asia, through trading platforms and brokerages.
The global reach of these ETFs, when combined with the Made-in-America narrative sets these assets up as tools for success, especially for international investors who are looking to gain exposure to crypto and U.S.-based assets in one fell swoop. According to the companies, TMTG intends to invest up to $250 million of its own capital into this new venture.
The funds will be custodied by Charles Schwab, a financial services giant.
Law firm Davis Polk & Wardwell LLP has been announced as a legal adviser to all parties, on the development of these ETFs and SMAs. Overall, if these ETFs are approved and they go live, they could attract the widest mix of investors from all over the world, in a win-win scenario for crypto and traditional assets.
