Rex Shares has filed for a number of meme coin ETFs, together with TRUMP, BONK, and DOGE. The agency can also be trying to start providing a number of extra typical crypto ETFs, similar to Bitcoin and Ethereum.
The crypto group has debated the practicality of meme coin ETFs, and it’s unclear how the SEC will react.
Might Rex Share Create Meme Coin ETFs?
Now that former Chair Gary Gensler has left the SEC, it’s trying like an open season for brand spanking new crypto ETFs. A wave of altcoin ETF functions started final Friday, however Trump’s inauguration has kicked the method into overdrive.
At the moment, ETF analyst James Seyffart famous that Rex Shares filed a broad array of meme coin ETFs regardless of providing no merchandise beforehand.
“That was quick. Rex Shares and Osprey have filed for a bunch of crypto ETFs together with meme cash TRUMP, BONK, and DOGE. Additionally consists of ETFs for Bitcoin, Ether, Solana, and XRP. Notably, these merchandise [will] maintain a combo of derivatives, the belongings, and a subsidiary. This appears much like a playbook issuers use within the commodity ETF world,” Seyffart stated.
Earlier than this sweeping set of regulatory adjustments, Rex Shares had little reference to the crypto ETF world. It proposed a Bitcoin Company Treasury Convertible Bond ETF in late December, however in any other case, has not provided any merchandise.
Nonetheless, the SEC’s altering regulatory stance has created optimism for digital belongings to turn out to be extra built-in into the retail market. Earlier as we speak, the SEC formally created a Crypto Activity Pressure to deliver extra regulatory readability to the trade.
These transformative initiatives may very effectively open doorways for various crypto ETF merchandise. There are already rumors about Litecoin and XRP ETFs profitable approval early this yr. So, it’s evident that Rex is just capitalizing on this pattern.
Nonetheless, the concept of a meme coin ETF just isn’t going effectively with everybody. ETF analyst Eric Balchunas referred to as Rex Shares’ proposal “surreal” and alluded to nostalgia for Gensler’s strategy. This angle has turn out to be surprisingly well-liked since Trump launched the TRUMP meme coin, a extremely controversial transfer.
“There are 30+ fillings for brand spanking new digital asset ETFs within the US, quite a bit are targeted on SOL or XRP ETFs and even one submitting is for a TRUMP ETF. No assure they’re going to get permitted – however undoubtedly value maintaining a tally of the inflow of functions and belongings they’re submitting for,” wrote Jacquelyn Melinek.
Is the Meme Coin Craze Getting Out of Hand?
It’s debatable that the bullish sentiment in meme cash is taking a darkish flip, as rug pulls are proliferating and these tokens are decreasing curiosity from different essential trade sectors.
When the SEC first permitted a Bitcoin ETF, it was thought-about the gold commonplace of institutional approval. Rex Shares is attempting to make an ETF out of a number of meme cash, which appears far much less prestigious.
Nonetheless, the TRUMP meme coin has reacted to this information. The token surged by practically 8% prior to now hour after declining all through the day.
Finally, it’s as much as the SEC to resolve how far the ETF wave will go. Of their farewell letter to Gensler, the 2 most pro-crypto Commissioners nonetheless expressed a “deep gratitude” for his friendship and “zealous advocacy.”
In different phrases, Rex Shares’ ETF pitches could not quantity to a lot. Their chance, nevertheless, has left the crypto area divided.
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