Rex Shares and Osprey Funds Have Filed to Launch an Exchange-Traded Fund (ETF) Based on Movement's MOVE Token

Investment managers Rex Shares and Osprey Funds have submitted an application to launch an exchange-traded fund (ETF) based on Movement, the Ethereum Layer 2 network token.

Investment managers Rex Shares and Osprey Funds have applied for an exchange-traded fund (ETF) based on Movement, the Ethereum Layer 2 network token. The filing makes it the first ETF associated with the recently decentralized blockchain.

According to the prospectus filed on Monday, the fund will devote 80% of the net to MOVE tokens or related derivatives by channeling the fund into a REX-Osprey MOVE Subsidiary. The approval of the SEC is required as the U.S. Securities and Exchange Commission must grant permission before any action can be taken on it.

Movement’s co-founder Rushi Manche highlighted that the ETF application was an important step for the company. “Breaking the pattern of ETFs limited to long-established cryptocurrencies opens doors for institutional capital to support next-generation blockchain innovation,” Manche stated.

The application also marks a growing trend of altcoins, including XRP, SOL, and HEDERA, seeking institutional investment and adoption of digital assets. Rex Shares and Osprey Funds had also requested funds tracking assets, including BONK, DOGE, and TRUMP memecoin.

Movement’s development and controversies

Movement was built using the MoveOS programming language initially created by Meta, a company that planned to use it on Diem, its former stablecoin. Its implementation has also faced criticism for not being transparent enough.

The Movement Network Foundation officially launched Movement Mainnet Beta on 30th November, but its deployment was delayed until 9th December. The network recently introduced RPC service, and a core mainnet release is anticipated before the 10th of March.

This ecosystem will launch the Cornucopia program to seed $250 million for the Movement Public Mainnet Beta. However, the team has faced significant criticism for its political affiliations. Manche previously mentioned politics as a key focus for crypto companies, and other blockchain initiatives share the same view, adapting to the pro-crypto Trump administration.

An unplanned launch of Movement devnet in January raised eyebrows after a DeFi startup, World Liberty Financial, linked to the Trump family, purchased $2 million worth of MOVE tokens shortly before reports emerged stating that Movement was in talks with Musk about an integration to the blockchain. Manche also refuted claims of insider trading.

Under the leadership of the new commissioner, Acting Chair Mark T. Uyeda, the SEC is displaying greater receptiveness towards the crypto domain. Despite this, no ETFs have been authorized yet.