Donald Trump's Reelection in 2024 Triggers a Cryptocurrency Bull Run

Donald Trump's election in November 2024 triggered a cryptocurrency bull run, fueled by his reputation as a pro-crypto leader.

Donald Trump’s return to the White House in November 2024 sparked a cryptocurrency bull run, thanks to his pro-crypto stance. His campaign promises, like setting up a strategic Bitcoin reserve for the U.S. and launching his own meme coin on January 17, fueled the optimism.

However, Trump’s inaugural address and initial executive orders had no mention of cryptocurrency, leaving investors guessing about his specific policies. But despite this, the market enthusiasm remained strong, with both retail and institutional players driving the rally.

Institutions, usually more conservative in their approach, showed surprising enthusiasm for the ongoing excitement. A recent Securities and Exchange Commission (SEC) filing on January 21 revealed plans by REX Shares and Osprey Funds to launch seven new cryptocurrency exchange-traded funds (ETFs).

Of these, two ETFs are particularly noteworthy and unprecedented in the market: ones based on Dogecoin (DOGE) and Trump’s meme coin (TRUMP). Along with the meme coin ETFs, the filing also outlines plans for Bitcoin, Ethereum (ETH), Solana (SOL), and XRP ETFs.

According to analyst James Seyffart, these funds will be filed under the 1940 Act, similar to the crypto futures ETFs. This structure allows the ETFs to include a mix of derivatives and direct asset holdings, managed through a Cayman Islands-based subsidiary.

While the introduction of meme coin ETFs is a first for the market, it raises questions about how these funds will navigate the extreme volatility inherent in meme-based assets. Large-cap cryptocurrency ETFs have historically attracted significant inflows, but whether these new offerings can capture similar interest—or fit within the risk tolerance of most investors—remains to be seen.