Trump Media and Crypto.com announced a partnership to launch new ETFs based on Cronos, Bitcoin, and other assets. The resolution is non-binding, and a Cronos ETF would need SEC approval.
Even though there are serious obstacles to implementing the stated program, Cronos surged by over 18% due to speculative interest and bullish momentum.
Crypto.com, a major exchange and issuer of the Cronos token, has been through a few changes recently. Although CRO fell dramatically at the end of 2024, the exchange has ventured into new markets.
Today’s partnership with Trump Media Group triggered a bullish cycle for the CRO token, as the announcement hinted at a potential Cronos ETF.
“Trump Media and Technology Group Corp has signed a non-binding agreement to partner with Crypto.com to launch a series of ETFs and ETPs. The ETFs are expected to comprise digital assets as well as securities with a Made in America focus spanning diverse industries such as energy [and] cryptocurrencies incorporating Bitcoin, Cronos, and others,” a press release stated.
The announcement clarified that these ETFs still require regulatory approval. Also, Crypto.com and Trump Media haven’t finalized a “definitive” agreement, even if the resultant ETFs will include Cronos.
Meanwhile, Cronos reached a yearly high in December after reports of the Crypto.com CEO and the US President’s meet-up and its legal resolution with the SEC. However, CRO has suffered a 30% drop since then. Today’s news brought fresh liquidity into the altcoin.
The SEC may be looking favorably on altcoin ETFs, but one based on Cronos is totally out of left field. Even if Trump personally intervenes, a Cronos ETF may still be months away. There haven’t been any ETF applications for the altcoin yet.
Another concern, of course, is the “Made in America” angle. Although the statement discusses US-based products, Crypto.com is currently headquartered in Singapore. The US is still the exchange’s primary target market.
The biggest problem, however, is that a Cronos ETF could be the biggest political crypto scandal since the TRUMP token. US Presidents are not supposed to conduct private business in any capacity, especially with foreigners.
Could Trump’s firm expect to win the SEC’s highest stamp of approval? Even if it did, wouldn’t that impact the Commission’s own legitimacy?
Overall, it’s evident that Trump Media is venturing deeper into the crypto industry and looking to extend its investment avenues. Such a partnership will also help the exchange increase its market share in the US and challenge Coinbase’s dominance.
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