Osprey Funds and Rex Shares have filed with the U.S. Securities and Exchange Commission (SEC) for several new cryptocurrency exchange-traded funds (ETFs), including one tracking the recently launched TRUMP coin. The January 21, 2025 filing also includes ETFs for established cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP (XRP), along with memecoins Dogecoin (DOGE) and Bonk (BONK).
The TRUMP coin, launched on January 18th, is associated with Donald Trump. Within 24 hours, its fully diluted valuation surged to $80 billion before stabilizing around $42 billion. This rapid ascent and subsequent decline, fueled by political connections and speculation, attracted significant attention. Solana, the blockchain hosting TRUMP, experienced considerable congestion due to the increased trading activity.
A TRUMP ETF would be the first to offer institutional investors exposure to this memecoin. The filing indicates the fund would allocate at least 80% of its net assets to TRUMP and related derivatives. Despite the inherent volatility of memecoins like TRUMP, such an investment vehicle could provide institutional investors with a structured approach to engaging with emerging digital assets.
Beyond TRUMP, the filing includes proposals for ETFs tracking Dogecoin, Bonk, and established cryptocurrencies like Bitcoin and Ethereum. These funds would invest in spot cryptocurrencies and associated financial instruments. While this reflects a growing trend in cryptocurrency ETFs, regulatory approval remains uncertain. The SEC’s prior caution under previous leadership raises questions, but President Trump’s pro-crypto stance might foster a more favorable regulatory environment.
These filings from Osprey Funds and Rex Shares are part of a larger movement. They join over a dozen pending cryptocurrency ETF applications awaiting SEC approval. While Bitcoin and Ethereum ETFs have been approved, memecoin ETFs like the proposed TRUMP fund face a more significant regulatory hurdle. The SEC’s ongoing evaluation of the risks and potential market impact of these products will determine their ultimate fate.
The outcome of these filings will significantly impact the future of cryptocurrency regulation in the U.S. as the market for crypto-based financial products expands. The volatility of TRUMP and other memecoins presents challenges for both investors and regulators, making the SEC’s decision a critical moment for the industry. The filings underscore the evolving landscape of digital assets and the increasing demand for regulated investment products in this space.
