Crypto Issuers File for Novel ETFs Amid Trump Administration

Exchange-traded fund issuer Rex Shares and crypto asset manager Osprey Funds have filed for numerous crypto-focused exchange-traded funds (ETFs), including a Trump ETF, with the Securities and Exchange Commission (SEC).

Rex Shares and Osprey Funds filed the applications on Tuesday, according to a filing with the SEC.

Trump ETF: A Memecoin Tracker

The Trump ETF would track the price of TRUMP, a memecoin launched by President Donald Trump on Friday, just before his inauguration. The coin amassed nearly $17 billion in trading volume over the past 24 hours, dropping nearly 25% over the same period.

First Lady Melania Trump also launched her own token, MELANIA, which currently trades at roughly $4. Both tokens are memecoins and therefore have no intrinsic value. Traders simply bet on the tokens’ price rising or falling.

An ETF tracking the price of it would therefore offer no value to buyers.

Other Memecoin ETFs

The issuers also filed documents to launch an ETF tracking the price of Dogecoin (DOGE), another memecoin. In one of his first executive orders, Trump established a “Department of Government Efficiency” by renaming the U.S. Digital Service. While the entity is supposedly tasked with streamlining certain government agencies and departments, its website at press time just featured a picture of the Dogecoin mascot.

The SEC under former Chair Gary Gensler was careful when approving ETFs tracking cryptocurrencies. It took issuers years to receive the green light to launch a spot bitcoin (BTC) ETF as well as a spot ethereum (ETH) ETF. It’s unclear how quickly these latest applications might be approved.

SEC Approval Uncertain

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas called the Trump ETF application “surreal.”

Conclusion

The proposed Trump ETF, along with other memecoin ETFs, is a novel concept that may raise eyebrows in the financial community. The SEC’s approval process will be closely watched, and it remains to be seen how these applications will be received.

FAQs

Q: What is a memecoin?

A: A memecoin is a cryptocurrency that has no inherent value and exists solely for the purpose of speculation or novelty. Memecoins often have a strong following and can experience rapid price fluctuations due to their limited supply and demand.

Q: How do memecoins work?

A: Memecoins work similarly to other cryptocurrencies, but they are not backed by any physical or digital asset. Traders buy and sell memecoins on cryptocurrency exchanges, and their value is determined by supply and demand.

Q: Are memecoins a good investment?

A: Memecoins are not considered a good investment by many financial experts due to their lack of intrinsic value and high volatility. It’s essential to approach memecoins with caution and do thorough research before making any investment decisions.

Q: What is the Trump ETF?

A: The Trump ETF is a proposed exchange-traded fund that would track the price of TRUMP, a memecoin launched by President Donald Trump. The ETF would allow investors to gain exposure to the memecoin without directly buying or selling it.

Q: How does the proposed Trump ETF work?

A: The proposed Trump ETF would work by tracking the price of TRUMP, which is a memecoin with no inherent value. The ETF would provide investors with a way to gain exposure to the memecoin without directly buying or selling it. However, it’s essential to note that the SEC has yet to approve the ETF, and its approval process is uncertain.