The TRUMP coin, which debuted on Jan. 18, was created by an entity linked to Donald Trump. Within 24 hours, the coin reached a fully diluted valuation of
A new filing with the U.S. Securities and Exchange Commission (SEC) has unveiled plans for a Donald Trump-coin exchange-traded fund (ETF). The ETF will track the performance of the TRUMP coin, among other memecoins and major cryptocurrencies.
The filing from Osprey Funds on Feb. 24 also includes proposals for ETFs tracking Dogecoin, Bonk, Bitcoin, and Ethereum among others. While the applications follow a growing trend of cryptocurrency ETFs, their approval by the regulatory body remains uncertain.
The TRUMP coin, debuting on Jan. 18, was created by an entity linked to former U.S. President Donald Trump. Surging rapidly within 24 hours of its launch, the coin reached a fully diluted valuation of $80 billion, later settling at around $42 billion.
Solana, the blockchain platform hosting the coin, experienced significant congestion during its launch due to the high trading volume in TRUMP coin. The coin's rapid ascent and subsequent decline have garnered attention owing to its political ties and speculative nature.
The proposed ETF will allocate at least 80% of its net assets to TRUMP coin and related financial derivatives, the filing states. Despite the volatility of memecoins like TRUMP, which are known for their wild price swings, such investments could provide institutional investors with a structured way to engage with emerging digital assets.
The filing also proposes ETFs linked to Dogecoin, Bonk, and major cryptocurrencies like Bitcoin and Ethereum, which will invest in spot cryptocurrencies and related financial instruments. While this marks a growing trend of cryptocurrency ETFs, their approval by the SEC is still up in the air.
During the previous administration, the SEC was cautious in approving cryptocurrency ETFs, raising concerns. However, statements from President Trump about turning the U.S. into the "crypto capital" may lead to a more favorable regulatory environment under the new leadership.
The filings by Osprey Funds and Rex Shares are part of a broader trend, joining a list of over a dozen proposed cryptocurrency ETFs awaiting SEC approval. While some, like Bitcoin and Ethereum ETFs, have already received the green light, the proposed memecoin ETFs, such as TRUMP, still face a regulatory challenge. It remains to be seen whether these funds will be approved, as the SEC continues to evaluate the risks and potential market impact of such products.
