DJT stock, Trump Media & Technology Group Corp, surged 36% and crypto ETFs were higher Monday following the weekend shooting attack on Donald Trump that left the former president with an injured ear.

The largest spot bitcoin ETF, the Blackrock Bitcoin Trust (IBIT), rose 10% and the futures-based ProShares Ether Strategy ETF (EETH) jumped 9% as of midday trading.

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

Trump survived the shooting at the rally that rattled the country and has been pinned on 20-year-old Thomas Matthew Crooks. The shooting led to calls for unity by Democratic and Republican leaders. The Republican Convention, where Trump is expected to earn the Republican nomination, kicked off in Milwaukee today.

What Is the ‘Trump Trade’?

The "Trump Trade" refers to the market movements and investor behaviors that emerge in response to the economic policies and political actions associated with a Donald Trump presidency. This term gained prominence particularly after his election in November 2016, when markets reacted to his promises of deregulation, tax cuts, and increased infrastructure spending.

During Trump's previous presidency, the Trump Trade led to a rally in U.S. equities, especially in technology and financial sectors, rising Treasury yields, tightening corporate bond spreads, a stronger U.S. dollar, and a surge in industrial metals.

A Trump victory in 2024 might imply that the Federal Reserve will remain cautious about cutting interest rates, as a pro-business environment might re-accelerate the American economy and increase inflation. The Trump Trade prompts investors to increase exposure to domestic equities, favor shorter-duration bonds, implement hedging strategies against a strong dollar, and diversify into safe-haven assets.

In the current election cycle, the Trump Trade has broadened to include the cryptocurrency market and his media company’s stock.

In June, Trump met with Bitcoin miners and later posted on his Truth Social account that Bitcoin mining might be "our last line of defense against a CBDC," referring to a central bank digital currency. He also expressed his desire for all remaining Bitcoin to be "MADE IN THE USA!!!"

BTC, ETH and crypto ETF prices have generally followed investor sentiment and expectations of a Trump win in November. Crypto investors are also anticipating Trump’s headliner role in the upcoming Bitcoin Conference 2024, which will occur in Nashville, TN from July 25 to 27.

DJT stock (Trump Media & Technology Group Corp.) has surged 75% this year, driven primarily by retail investors betting on a Trump win at the Nov. 5 presidential election rematch vs President Biden.

Trump ETFs

There are 26 ETFs with DJT stock as a holding, but only one, the VanEck Social Sentiment ETF (BUZZ) holds as much as 2% exposure to Trump’s media company. The next highest allocation weight is Global X Social Media ETF (SOCL) with 0.54% DJT stock and the other 24 funds having 0.1% or lower exposure.

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