Rex has filed new ETF registration paperwork with the Securities and Alternate Fee, itemizing a number of cryptocurrency-focused funds, together with a TRUMP ETF, a DOGE ETF, a BONK ETF, and others tied to belongings akin to Bitcoin, Ethereum, XRP, and Solana.
[Editor’s Note: This is not a joke.]
Per Bloomberg’s ETF specialist, Eric Balchunas, the filings present that every proposed fund targets a delegated reference asset and plans to speculate at the very least 80% of its web belongings in that asset, whether or not by means of direct holdings or derivatives like futures and swaps. Balchunas described the scenario as “surreal.”
The TRUMP ETF seems poised to trace the value of TRUMP, the memecoin launched shortly earlier than Donald Trump’s inauguration. The official submitting notes the fund’s funding by means of a subsidiary known as REX-Osprey TRUMP Subsidiary, with publicity to TRUMP doubtlessly expanded by means of futures contracts and swap agreements.
The submitting additionally highlights TRUMP’s speedy development, citing its transfer from an unspecified valuation to a market capitalization within the multi-billion-dollar vary, although volatility has outlined its efficiency.
TRUMP’s market cap briefly exceeded $15 billion, then dropped almost $7.8 billion when the token declined by about 50%. As of press time, information of the submitting, which was issued inside the final hour, has not affected the value.
The SEC has historically approached spot Bitcoin ETFs and novel crypto funds cautiously, emphasizing the significance of investor safety and market surveillance. If the brand new collection of Rex filings beneficial properties approval, it will point out an infinite U-turn.
The inclusion of TRUMP and a DOGE ETF among the many proposed merchandise highlights the dimensions of the affect of Trump’s memecoin launch and Gary Gensler’s resignation.
The trail to marketplace for a TRUMP ETF ought to rely on the SEC’s evaluation of portfolio composition and danger disclosure round memecoins. Nonetheless, underneath the brand new administration, it could be unwise to make use of previous expertise as a sign of future regulatory adjustments.
Since taking on the presidency, Trump has not talked about Bitcoin, crypto, or memecoins. He didn’t introduce government orders on crypto or free Ross Ulbricht throughout his first day.