Trump Media, the company behind Truth Social, announced a joint launch of ETFs and ETPs with Crypto.com slated for 2025. In response to this news, DJT stock rose by 9% in after-hours trading.
Strategic Partnership
The partnership between Trump Media and Crypto.com is more than just a media play. The products will combine digital assets (such as Bitcoin and Ethereum) and traditional securities, particularly in the energy sector. Crypto.com will provide the technical infrastructure, while Trump Media offers political and media influence. The goal is to attract both enthusiasts and cautious institutional investors.
Markets on Edge
The 9% stock jump reflects both enthusiasm and speculation. Trump Media, having recently gone public, remains volatile, and its valuation could change if ETF technical details disappoint.
Legal Aspects and Challenges
Mixed ETFs (crypto + energy) fall into a legal gray area. The Securities and Exchange Commission (SEC), already at odds with stablecoins, might demand clarifications. The technical role of Crypto.com in this partnership is crucial: any bug or delay could undermine trust in the ETFs.
If the partnership between Trump Media and Crypto.com is successful, it could provide the companies with significant legitimacy against giants like BlackRock and Fidelity. However, the mixed ETFs require further clarification from regulators and may face legal hurdles.
