Trump Media pushes forward with pivot to crypto, ETF plans
The plan, including a series of exchange-traded funds aligned with Trump's America First policies, followed news of a preliminary agreement reached last month between Trump Media and Crypto.com, a digital asset platform with ties to broker-dealer Foris LLC, and Yorkville America Digital, an affiliate of Yorkville Advisors, a New Jersey-based investment advisory and asset management firm.
Trump Media, which runs the Truth Social streaming and social media platform, said the funds are expected to launch later this year, subject to regulatory approval, and will be widely available in the U.S. and abroad. So far, no ETF filings have been submitted to the Securities and Exchange Commission website.
"We look forward to bringing ETFs to the market for investors who believe both the American economy and digital assets are poised for tremendous growth," said Devin Nunes, CEO of Trump Media, in a press release.
On March 27, Crypto.com said the SEC had informed it that the agency had officially closed a 2024 investigation into the company and would file no enforcement action against it.
Trump Media, Crypto.com, Foris and Yorkville did not immediately respond to requests for comment.
The Trump family, long rooted in skyscrapers and country clubs, has opened multiple beachheads in crypto, quickly gaining hundreds of millions of dollars. Those other crypto forays include Trump NFTs, a meme coin, a stake in a newly formed bitcoin producer called American Bitcoin and the cryptocurrency exchange World Liberty Financial.
The Trump Organization announced in January that the president's investments, assets and business interests, including his $2.7 billion stake in Trump Media, would be held in a trust managed by his children and he would play no role in day-to-day operations or decision-making.
A handful of ETFs already offer products with investment strategies that align with Trump's policy objectives. The largest of these is the American Conservative Values ETF, which has $110 million in assets, launched in October 2022. The God Bless America ETF, launched the same month, describes itself on its website as "an investment for God-fearing, flag-waving conservatives" and has assets of $79.4 million.
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Fortunately for Xiaomi, its consumer base is sticky. Known as 'Mi Fans', the loyal customers have played a pivotal role in the company's rise. Xiaomi cultivated this fandom early on by prioritising user feedback and the grassroots allegiance has helped it build strong brand equity, especially in China. The SU7 has remained a top-selling model even after the accident in March. Indeed, dealers have reported that nearly 50 per cent of customers plump for the SU7 without comparing it to other brands. 'A significant number of older consumers are buying the SU7 for their children, indicating that the model has built trust among more conservative buyers thanks to its safety and quality,' said Rosalie Chen, a senior analyst from investment research firm Third Bridge. Small scale Xiaomi has set a delivery target of 350,000 units in 2025, up from its previous goal of 300,000, buoyed by demand for the newly launched YU7 and a ramp-up in production. The starting prices for the SU7 sedan, at 215,900 yuan, and its SUV, at 253,500 yuan, make them competitive alternatives to models such as Tesla's Model 3 and Model Y. The EVs are also showing financial promise. Xiaomi posted record revenue for the first quarter this year, driven by car and smartphone sales. Its EV division is expected to turn profitable in the second half of 2025, Lei said in an investor meeting in June. But even if the popularity of Xiaomi's EVs can spring beyond the company's devoted base, production is still on a much more boutique scale. China's top car brand, BYD, sold around 4.3 million EVs and hybrids last year, many overseas, while Tesla moved about 1.8 million vehicles globally. Toyota Motor, the world's No 1 automaker, sold some 10.8 million vehicles and boasts a lineup of approximately 70 different models. Lei does not seem to be prioritising the mass market of below US$20,000 yet, which drives significant volume and is where BYD dominates, Automotive Foresight's Zhang said. Without a lineup in that segment, Xiaomi cars will remain niche purchases for middle to higher-income consumers and Xiaomi may face the same risks as Tesla, which is seeing its sales slump exacerbated by a narrow consumer base and limited models. Nonetheless, Lei seems buoyed by Xiaomi's early wins and is now looking at global expansion. Xiaomi will consider selling cars outside China from 2027, he said last week. Success or otherwise, the European Union, the US and Turkey have all slapped tariffs on Chinese EVs, but Xiaomi wants to set up an R&D centre in Munich and may test sales starting in European markets such as Germany, Spain and France when the time is right, Chinese media 36Kr reported in April. 'Xiaomi is a latecomer to the auto industry,' Lei admitted on Weibo in June. But, he said, in a market driven by technology and innovation and the rising global influence of China's EV culture, 'there are always opportunities for latecomers'. BLOOMBERG
