Asset Managers File for Memecoin and Crypto ETFs

Asset managers Osprey Funds and REX Shares are looking to launch exchange-traded funds (ETFs) that include memecoins such as Dogecoin, Official Trump (TRUMP), and Bonk. A regulatory filing on Jan. 21 also revealed plans for ETFs targeting Bitcoin, Ether, Solana, and XRP. These ETFs aim to hold spot cryptocurrencies directly, alongside related financial derivatives. “The Fund, under normal market conditions, invests at least 80% of its net assets (plus any borrowings for investment purposes) in the Reference Asset and other assets that provide exposure to the Reference Asset,” the filing explained. The REX-Osprey TRUMP ETF would be the first ETF to include TRUMP, a memecoin endorsed by U.S. President Donald Trump and issued on Jan. 18 by a Trump-affiliated group. TRUMP Memecoin Makes Waves Trump’s token quickly surpassed $80 billion in fully diluted value (FDV) within its first day. As of Jan. 21, the memecoin trades at an FDV of around $42 billion. Its launch spurred significant activity on the Solana blockchain, causing congestion on the network for several days. Moonshot, the platform President Trump recommended for purchasing TRUMP tokens, reported over 200,000 new on-chain users since the token’s debut. Crypto ETFs Await Regulatory Approval U.S. regulators are expected to take a more favorable approach to crypto oversight under President Trump, who has pledged to make the U.S. the “world’s crypto capital.” More than a dozen proposed cryptocurrency ETFs are currently awaiting approval, with filings submitted in 2024 for altcoins such as Solana, XRP, and Litecoin. Several issuers have also proposed crypto index ETFs that would hold diversified baskets of digital tokens. Rex Shares has already launched other crypto-related ETFs, including the T-REX 2X Long MSTR Daily Target ETF, which offers leveraged exposure to frequent Bitcoin buyer MicroStrategy.