Crypto ETF filers are testing the SEC's boundaries. (Photo by Roy Rochlin/New York Road Runners via Getty Images)
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Key Takeaways
REX Financial filed for a TRUMP spot ETF.
Approval could make it the lowest market cap token with an ETF.
Experts caution that a friendlier SEC doesn’t guarantee blanket approvals.
Crypto exchange-traded fund (ETF) filers are wasting no time pushing the boundaries with the newly restructured Securities and Exchange Commission (SEC).
Proposals that would have been unthinkable under the previous administration are now landing on the regulator’s desk.
In a surprising twist, Donald Trump’s official memecoin—launched just a week ago and already causing ripples across the crypto market—has attracted multiple ETF bids from asset managers eager to capitalize on the shifting regulatory climate.
On Tuesday, Jan. 21, REX Financial and Osprey Funds filed multiple ETF applications with the SEC, including one for the TRUMP memecoin.
The filings, made under the 1940 Act, suggest that the proposed ETF would combine derivatives, assets, and holdings via a Cayman subsidiary.
This structure mirrors strategies used for commodity ETFs. Despite this, the odds of approval seem slim.
REX Capital files for multiple ETFs. Source: SEC
Bloomberg ETF expert Eric Balchunas pointed out that the filing could theoretically launch in April, beating out ETFs for more established tokens like XRP and Solana.
As for the SEC’s reaction, Balchunas is unsure how the regulator will respond.
The early forecast suggests the SEC is likely to rain on the parade of the TRUMP memecoin ETF.
Given the regulator’s long history of rejecting Bitcoin ETFs—even when BTC’s market cap surpassed a trillion dollars—it seems improbable that a mere five-day-old meme token with a $10 billion valuation will get the green light.
Pushing Boundaries With Meme ETFs
The surge in memecoin ETF filings reflects a broader attempt to test the regulatory waters under Trump’s administration.
Bloomberg analyst James Seyffart sees this as a move to push boundaries.
The ETF expert warned that even a more lenient SEC might draw the line at approving a memecoin ETF.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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