Cronos (CRO) Surges 10% As Trump Media Partners with Crypto.com for Altcoin ETFs

Hifi Tech India

Cronos rallied 10% after Crypto.com announced a partnership with Trump Media to create new altcoin ETFs. Today’s announcement is a binding agreement that builds on earlier relationships.

?CRO is the native cryptocurrency of the Cronos blockchain, developed by Crypto.com. It serves as a utility token within the Crypto.com ecosystem, facilitating various functions such as staking, transaction fee payments, and accessing benefits across the exchange’s services.?

Crypto.com and Trump Media Officially Partner

Last month, Crypto.com announced a non-binding partnership with Trump Media. This saw increasing market interest in the token, but also attracted harsh criticism.

Specifically, the firm re-issued 70 billion CRO tokens that were “permanently burned” in 2021. The two companies just announced a binding agreement, but it caused smaller gains:

This new agreement between Crypto.com and Trump Media seems substantially similar to the last one. The two firms committed to launching new ETFs based on unspecified digital assets and “securities with a Made in America focus,” specifically mentioning energy firms.

Crypto.com has expressed interest in a CRO ETF, making it a likely target for this partnership.

“Crypto.com is the leading platform to bridge crypto and traditional finance, and this agreement is a testament to those capabilities. This partnership gives the Trump Media ETFs global distribution powered by the Crypto.com platform. It’s a win for Trump Media, Crypto.com, CRO, and Yorkville America Digital,” said Kris Marszalek, Co-Founder and CEO of Crypto.com.

On the surface level, it may look like SEC approval is the largest hurdle facing Trump Media and Crypto.com. The Commission has been flooded with applications since Trump took office, but no new altcoin ETFs have been approved yet.

As a report from yesterday alleged, various crypto firms have received tangible regulatory breakthroughs since donating to Trump’s Inauguration.

Several firms (including Crypto.com) had SEC investigations closed, while others, like Galaxy Digital, got the Commission’s approval for key business ventures.

Of course, Trump’s Presidency has promised a sweeping tide of pro-crypto regulations, so it could be unfair to single out specific firms as beneficiaries.

Further, an ETF approval is a big deal, and even a friendlier SEC might not give it easily. Whether or not the markets think the SEC would fast-track this product has no bearing on the actual outcome.

As ETF analysts have outlined, the entire market is saturated right now. There are 72 active proposals for new altcoin ETFs, but Bitcoin controls 90% of the crypto ETF market.

If a CRO ETF wins approval, it may be competing with a huge wave of newcomers over tiny chunks of BTC’s market share. Perhaps investors don’t see it as a likely option.

Overall, Trump and Crypto.com are doubling down on their partnership, and it could have big long-term implications. Any of the aforementioned factors (or a mix of several) might explain this outcome.