President Trump’s embrace of digital assets gave the crypto industry a lift after his election victory in November — and now his foray into crypto is boosting his own business.
Trump Media and Technology Group (DJT) jumped 12.3% on Tuesday following news that the company has partnered with cryptocurrency exchange Crypto.com to launch a series of crypto-focused ETFs.
The ETFs will be issued through Trump Media’s fintech arm, Truth.Fi, and will include a “unique ETF basket of cryptocurrencies incorporating bitcoin, cronos, and other crypto assets,” according to a company press release.
In addition to digital assets like bitcoin and cronos, the funds will also include “securities with a Made in America focus spanning diverse industries such as energy,” the company stated.
The ETFs are expected to launch later this year, pending regulatory approval.
Singapore-based Crypto.com will support backend infrastructure, custody, and supply the cryptocurrencies for the funds. U.S.-based broker-dealer Foris Capital will also provide operational support.
“These ETFs give consumers more options from a brand with a loyal following,” said Kris Marszalek, CEO and co-founder of Crypto.com. “Once launched, these ETFs will be available on the Crypto.com app for our more than 140 million users around the world.”
The launch will coincide with a broader product push from Truth.Fi, including a slate of Separately Managed Accounts (SMAs). TMTG says it will invest in both ETFs and SMAs using up to $250 million in cash reserves, which will be custodied by Charles Schwab.
“We aim to create inventive funds incorporating firms that concentrate on rapid growth, technological innovation, and strengthening the U.S. economy, unencumbered by woke nonsense and political posturing,” TMTG CEO Devin Nunes said in a statement.
“Investors will finally have options that adhere to their principles and that support superior U.S. companies precisely focused on their core businesses.”
Blurring lines between policy and business?
The move could raise new questions about potential conflicts of interest between President Trump’s crypto-friendly policies and his business ventures.
Trump remains the majority owner of Trump Media, which operates the Truth Social platform and currently carries a market cap of about $4.6 billion.
In addition to the ETF news, World Liberty Financial (WLFI) — a crypto project backed by Trump and his sons — announced it is launching a stablecoin called USD1.
According to WLFI, USD1 will be backed by short-term U.S. Treasuries, U.S. dollar deposits, and other cash equivalents.
“USD1 provides what algorithmic and anonymous crypto projects cannot — access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance,” WLFI co-founder Zach Witkoff said in a statement.
USD1 will be minted on both the Ethereum and Binance Smart Chain blockchains, with plans to expand to other networks over time.
Binance founder Changpeng Zhao posted about the launch on X Tuesday — but later warned that “a lot of scammers created coins with the same name” and clarified that USD1 is not yet tradable.
For TMTG, this crypto push may provide a much-needed revenue lifeline. The company posted a $400 million loss in 2024 while generating just $3.6 million in revenue.
Despite Tuesday’s rally, DJT stock remains down 34.8% year-to-date, after spiking in the weeks following Trump’s election victory.
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