DJT Stock, Crypto ETFs Rally on ‘Trump Trade’

Trump Tower Building

DJT stock, Trump Media & Technology Group Corp., surged 36% on Monday and crypto ETFs rose after the weekend shooting of Donald Trump, which injured the former president’s ear.

The largest spot Bitcoin ETF, the Blackrock Bitcoin Trust (IBIT), rose 10%, while the futures-based ProShares Ether Strategy ETF (EETH) rose 9% in the afternoon session.

Trump’s election prospects, known as the pro-crypto candidate compared to President Joe Biden, are now a major factor for the cryptocurrency market. BTC has risen 7% since the failed assassination attempt in Butler, Pennsylvania, on Saturday.

Trump survived the rally shooting that rocked the nation and attacked 20-year-old Thomas Matthew Crooks. The attack has prompted calls for unity from Democratic and Republican leaders. The Republican convention, where Trump is expected to win the Republican nomination, began in Milwaukee today.

What Is the ‘Trump Trade’?

The “Trump Trade” refers to market movements and investor behavior that occur in response to the economic policies and political actions associated with Donald Trump’s presidency. The term came to prominence after his election in November 2016, as markets reacted to promises of deregulation, tax cuts, and increased infrastructure spending.

During Trump’s previous presidency, the Trump Trade led to a rally in U.S. stocks, particularly in the technology and financial sectors, rising Treasury yields, narrowing corporate bond spreads, a stronger U.S. dollar and a rally in industrial metals.

A Trump victory in 2024 could mean the Federal Reserve remains cautious about cutting interest rates, as a business-friendly environment could rev up the American economy and boost inflation. Trump’s trade encourages investors to increase exposure to domestic stocks, favor shorter-term bonds, implement strategies to hedge against a strong dollar, and diversify into safe-haven assets.

In the current election cycle, Trump trading has expanded to include the cryptocurrency market and media company stocks.

Trump, Crypto ETFs and DJT Stock

In June, Trump met with Bitcoin miners and later wrote on his Truth Social account that Bitcoin mining could be “our last line of defense against CBDC,” meaning a central bank digital currency. He also stated that he wanted all remaining Bitcoin to be “MADE IN THE USA”!!!

BTC, ETH, and crypto ETF prices have generally tracked investor sentiment and expectations for a Trump win in November. Crypto investors are also eyeing Trump’s starring role at the Bitcoin Conference 2024, which will take place in Nashville, TN from July 25-27.

The story continues

DJT stock (Trump Media and Technology Group Inc.) is up 75% this year, driven primarily by retail investors betting on a Trump victory over President Biden in the November 5 presidential election.

Trump ETFs

There are 26 ETFs that hold DJT stock, but only one, the VanEck Social Sentiment ETF (BUZZ), has up to 2% exposure to Trump’s media company. The next-highest allocation weight is the Global X Social Media ETF (SOCL), which holds 0.54% of DJT stock, and 24 other funds have 0.1% exposure or less.

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