A new ETF emerges betting on Trump's deregulation

When Wall Street smells the opportunity of regulatory easing, capital will never be late. An ETF specifically betting on Trump's deregulation policies is about to land on the New York Stock Exchange, targeting companies that may benefit from regulatory rollbacks, covering everything from Bitcoin to nuclear energy stocks. According to the latest report from Reuters, three U.S. investment management firms have jointly launched the "Free Market ETF" (FMKT), which will invest in companies of any industry and size, as long as its managers believe these companies may benefit from the deregulation policies implemented during Trump's second term. The ETF officially began trading on the New York Stock Exchange on Tuesday, jointly launched by Point Bridge Capital, Tactical Rotation Management, and SYKON Asset Management. Michael Gayed, one of the founders of the ETF, stated: “There is no other investment product in the market themed around deregulation.” The fund has a broad investment scope, including assets like Bitcoin and gold, as well as various corporate stocks that may benefit from deregulation—ranging from mid-sized financial institutions to the nuclear energy sector. According to public information, its key holdings include uranium company Uranium Energy, online brokerage Robinhood Markets, and bank Old National Bancorp. Another ETF founder, Lambert, admitted that the idea originated last summer: “When the Supreme Court overturned the Chevron doctrine, I started thinking about this (ETF).” In June 2024, the U.S. Supreme Court voted 6-3 to overturn the "Chevron doctrine" established in 1984, which had granted regulatory agencies greater discretion in interpreting the laws they enforce. Lambert believes this is a “huge victory” for companies burdened by heavy regulation, and that Trump's election victory would make the deregulation process “even faster.” “It's About Profit, Not Politics” Although the construction logic of this ETF is deeply tied to the current political agenda and judicial changes in the U.S., manager Gayed emphasized that its core driving force is commercial interest: “This is about profit, not politics.” However, he also acknowledged that the current political trends in the U.S. are indeed factors he expects to bring profits to the ETF's portfolio. The operational platform for the ETF is supported by "white-label" ETF issuer Tidal Investments. As Trump's government policy blueprint gradually unfolds, this timely ETF will face the real test of the market