- REX-Osprey has submitted an ETF filing that would include TRUMP, DOGE, and BONK tokens, with the TRUMP memecoin being particularly notable for its recent launch.
- The asset manager has simultaneously filed for traditional cryptocurrency ETFs covering Bitcoin, Ethereum, Solana, and XRP, adding to over 30 existing digital asset ETF applications.
- Despite a potentially more crypto-friendly SEC leadership, analysts like James Seyffart express scepticism about approval prospects, especially given the speculative nature of memecoins and TRUMP token’s recent creation.
It’s Trump 2.0 and anything can happen over the next four years. But an exchange-traded fund (ETF) for memecoins? Not sure this was on anyone’s radar.
Yet, here we are: Rex Shares and Osprey Funds (or short REX-Osprey) has just filed for a number of ETFs containing memecoins such as TRUMP, DOGE, BONK and others.
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TRUMP is a memecoin that President Donald Trump launched just days before his inauguration and has raised some eyebrows – so it comes as a bit of a surprise that a memecoin which isn’t even a week old (and has absolutely no intrinsic value, nor does it claim to do so) would be included in an ETF.
The filing with the US Securities and Exchange Commission (SEC) also revealed that REX-Osprey is looking to launch an ETF for Bitcoin, Ethereum, Solana and XRP.
It remains to be seen if the SEC, even under new and pro-crypto leadership, is keen on approving a memecoin fund. Regardless, the filing includes a standard SEC warning that nothing has yet been approved:
The U.S. Securities and Exchange Commission (“SEC”) nor the Commodities Trading Commission has not [sic] approved or disapproved these securities or passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense.
SECBloomberg ETF analyst James Seyffart explained that “these products are filed under the 1940 Act (like crypto futures ETFs)”.
They’ll hold a combo of derivatives, the assets, and a cayman subsidiary which will hold the assets. This looks similar to a playbook issuers use in the commodity ETF world to avoid K-1’s but idk.
James Seyffart, BloombergUncertainty Remains if New SEC Leadership Will Approve ETFs
There’s a whole list of issuers waiting to launch crypto-ETFs, like for Solana, XRP and others and Bloomberg has counted more than 30 filings for “digital-asset-based ETFs”.
REX-Osprey also manages publicly listed trust funds for Bitcoin, Solana, Polkadot and BNB Chain. Additionally, the New York-based asset manager offers private placement options for assets like BONK.
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Seyffart cautioned that just because the SEC is more crypto-friendly doesn’t mean that all caution will be thrown out of the window:
These are the first filings we’ve seen for memecoin ETFs in the US. The TRUMP ETF would hold an asset that was only created a few days ago, while BONK and DOGE are two of the most popular memecoin assets in the world before this weekend. I’m not sure that even a libertarian-minded and Republican-controlled SEC will want to approve these products. But time will tell.
James Seyffart, BloombergCredit: Source link
