Investment Management Firms Want to Bring Trump Coin to Institutions With a New ETF

Crypto issuers surely look to deliberation thing is imaginable present that Donald Trump is successful office.

Exchange-traded money issuer Rex Shares and crypto plus manager Osprey Funds connected Tuesday filed for galore crypto-focused exchange-traded funds (ETF), including a Trump ETF, according to a filing with the Securities and Exchange Commission (SEC) connected Tuesday.

The ETF would way the terms of TRUMP, the memecoin launched by the President himself connected Friday, a fewer days earlier his inauguration. The coin amassed astir $17 cardinal successful trading measurement implicit the past 24 hours portion dropping astir 25% implicit the aforesaid period.

First Lady Melania Trump besides launched her ain token called MELANIA, which presently trades astatine astir $4. Both tokens are memecoins and truthful person nary intrinsic value. Traders simply stake connected the tokens' terms rising oregon falling.

An ETF tracking the terms of it would truthful connection nary worth to buyers.

“This to maine seems similar issuers pushing the envelope with a caller SEC medication portion astatine the aforesaid clip trying a caller operation for providing vulnerability to integer assets successful an ETF wrapper,” said James Seyffart, an ETF expert astatine Bloomberg Intelligence.

The issuers besides filed documents to motorboat an ETF tracking the terms of Dogecoin (DOGE), different memecoin. In 1 of his first enforcement orders, Trump established a "Department of Government Efficiency" by renaming the U.S. Digital Service. While the entity is supposedly tasked with streamlining definite authorities agencies and departments, its website astatine property clip conscionable featured a representation of the dogecoin mascot.

The SEC nether erstwhile Chair Gary Gensler was cautious erstwhile approving ETFs tracking cryptocurrencies. It took issuers years to person the greenish airy to motorboat a spot bitcoin (BTC) ETF arsenic good arsenic a spot ethereum (ETH) ETF. It's unclear however rapidly these latest applications, which besides see ETFs tracking BONK (another memecoin), XRP (associated with the institution Ripple) and SOL (a furniture 1 blockchain), mightiness beryllium approved.

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