Asset manager REX-Osprey is reportedly in pursuit of launching an exchange-traded fund (ETF)

This move was officially disclosed in a filing made on March 10, coinciding with the launch of Movement's public mainnet beta.

Asset manager REX-Osprey is reportedly aiming to launch an exchange-traded fund (ETF) tracking the Movement Network’s native token, MOVE.

This move was officially disclosed in a filing on March 10, coinciding with the launch of Movement’s public mainnet beta. The layer-2 (L2) blockchain network, which uses the Move programming language, seeks to provide an innovative alternative in the rapidly evolving landscape of cryptocurrency investment.

The proposed ETF will provide traditional investors with a regulated pathway to engage with emerging blockchain technologies without the complexities associated with managing cryptocurrencies directly. Cooper Scanlon, co-founder of Movement Labs, said that there has been 'a lot of interest' from traditional investors in such offerings.

The Movement Network operates on Ethereum’s L2 framework, enabling more efficient and scalable transactions through its unique underlying architecture. Approximately $250 million is locked in total value within its public mainnet, while the MOVE token boasts a fully diluted market valuation of around $5 billion, according to CoinMarketCap.

Although the U.S. Securities and Exchange Commission (SEC) has previously authorized ETFs for Bitcoin and Ether, it has yet to approve any for altcoins. Rushi Manche, another co-founder at Movement Labs, expressed optimism that permitting a broader range of altcoin ETFs could open new avenues for institutional capital to flow into next-generation blockchain innovations.

The current pattern of asset managers vying to set up ETFs on various altcoins is gaining momentum. Just days prior to REX-Osprey’s announcement, Bitwise submitted a request to list a spot Aptos ETF. Aptos, launched by a team of former employees from Facebook (now Meta) in 2022, exemplifies the influx of novel digital assets seeking institutional acknowledgment.

Recent filings indicate that other well-known altcoins, including Polkadot’s DOT, Litecoin (LTC), and Solana (SOL), are also in the queue for potential ETF listings. Nasdaq has indicated its interest in listing a Grayscale ETF for Polkadot, while anticipated approval rates for Litecoin and Solana ETFs are considered promising, with estimates of 90% and 70%, respectively.

The regulatory framework surrounding cryptocurrency in the United States finds itself in a pivotal phase. With voices like that of U.S. President Donald Trump expressing a desire for the country to emerge as the “world’s crypto capital,” and with pro-crypto individuals placed strategically within regulatory bodies, the landscape is poised for significant evolution.

In this unfolding dialogue on altcoin ETFs, these developments might not only reshape how institutional capital interacts with the crypto ecosystem but also consolidate the role of alternative cryptocurrencies further into mainstream investment narratives.