- TRUMP sparks discussions about memecoin ETF proposals, including DOGE, BONK, and XRP tracking funds.
- SEC’s new crypto-friendly leadership may approve more diverse digital asset ETFs.
As Donald Trump steps into the role of the 47th President of the United States, he is embracing the world of cryptocurrency like never before.
Just a day before his inauguration, Trump launched his own memecoin, Official Trump [TRUMP], which has already made waves in the digital asset space.
ETF to track Trump memecoin
In a notable move, REX Advisers and Osprey Funds have filed with the U.S. Securities and Exchange Commission to introduce an exchange-traded fund (ETF).
This ETF will track TRUMP, along with other popular memecoins like Dogecoin [DOGE] and Bonk [BONK], as well as established tokens such as Solana [SOL] and Ripple [XRP].
This comes as the TRUMP coin surged by 6.5% to $41.79 as per CoinGecko at the time of writing, amassing nearly $17 billion in trading volume.
Additionally, First Lady Melania Trump has also entered the crypto scene with her own token, Melania Meme [MELANIA], which is also generating attention.
While these tokens are classified as memecoins without intrinsic value, the speculative nature of their price movements is drawing significant interest from traders.
However, it’s important to note that an ETF that tracks the price of TRUMP would ultimately provide no tangible benefit to investors.
Execs weigh in
Remarking on the same, James Seyffart, an ETF analyst in conversation with Bloomberg Intelligence said,
“This to me seems like issuers pushing the envelope with a new SEC administration while at the same time trying a novel structure for providing exposure to digital assets in an ETF wrapper.”
That being said, these filings will gauge the extent to which the SEC’s newly crypto-friendly leadership, which initiated a policy overhaul on the 21st of January, is prepared to approve fresh crypto products.
Expressing on the matter, Todd Sohn, ETF strategist at Strategas added,
“This is the wild west, now; a world where there is the potential to unleash a lot of esoteric products and people are willing to see what will fly because it’s such a growth area.”
What’s more?
Additionally, several new fund proposals were submitted last week, including the CoinShares Digital Asset ETF and leveraged XRP funds from ProShares.
Currently, U.S. crypto ETFs mainly track Bitcoin [BTC] and Ether [ETH] or their futures contracts.
Now with the Trump administration’s influence, the crypto and ETF industries anticipate broader approval of new fund types.
Acting on the same, SEC Chair Mark Uyeda has already announced the creation of a “crypto task force,” aiming to develop clearer regulations for digital assets, potentially paving the way for more diverse crypto funds.
Therefore, Eric Balchunas, senior ETF analyst at Bloomberg when remarking on the Trump ETF application put it best when he said,
“Surreal”
