As the 47th President of the United States, Donald Trump is delving into the realm of digital currency in a profound manner.
Prior to his official induction, Trump unveiled his very own viral token, Official Trump [TRUMP], which has swiftly grabbed the attention of the digital asset community.
Exchange-Traded Fund for Trump Viral Token
In a significant development, REX Advisors and Osprey Funds have formally requested approval from the U.S. Securities and Exchange Commission for the launch of an exchange-traded fund (ETF).
This ETF is designed to mirror the movement of TRUMP, in addition to other trendy viral tokens such as Dogecoin [DOGE] and Bonk [BONK], alongside established coins like Solana [SOL] and Ripple [XRP].
As of the current writing, the value of TRUMP has escalated by 6.5% to $41.79 according to data from CoinGecko, with a trading volume approaching $17 billion.
Moreover, the First Lady Melania Trump has also entered the cryptocurrency sphere with her token, Melania Meme [MELANIA], which is also starting to gain traction.
Despite these tokens being classified as viral tokens lacking intrinsic value, the speculative nature of their price fluctuations is capturing the interest of many traders.
Nevertheless, it should be noted that an ETF that trails the price of TRUMP would ultimately offer no concrete advantages to investors.
Industry Experts’ Insights
Commenting on this development, James Seyffart, an ETF expert speaking with Bloomberg Intelligence, remarked,
“To me, this appears like issuers are testing the waters with a new SEC administration while also exploring a unique structure to offer exposure to digital assets through an ETF vehicle.”
These filings will serve as a litmus test to assess the willingness of the more crypto-friendly leadership at the SEC, which initiated a policy revamp on the 21st of January, to greenlight fresh cryptocurrency products.
Sharing his thoughts on the matter, Todd Sohn, an ETF strategist at Strategas, added,
“The current landscape resembles the untamed frontier; a realm ripe for the introduction of numerous niche products as individuals are eager to see what will resonate due to the explosive growth in this sector.”
Further Development
Furthermore, numerous new fund proposals were recently submitted, including the CoinShares Digital Asset ETF and leveraged XRP funds from ProShares.
Presently, U.S. cryptocurrency ETFs predominantly mirror the movements of Bitcoin [BTC] and Ether [ETH] or their futures contracts.
With the influence of the Trump administration, both the cryptocurrency and ETF sectors are anticipating broader approval for novel fund categories.
In alignment with this, SEC Chair Mark Uyeda has announced the establishment of a “crypto task force” with the aim of formulating clearer regulations for digital assets, potentially paving the way for a more diverse array of cryptocurrency funds.
Therefore, Eric Balchunas, a senior ETF analyst at Bloomberg, aptly described the application for the Trump-themed ETF as,
“Surreal.”