What You Need to Know:
- Rex Shares and Osprey Funds filed paperwork for several crypto ETFs, including one focused on Trump Coin.
- The proposed ETF aims to track the newly launched Trump Coin, which saw significant trading volume of nearly $17 billion in the last day despite a price drop of nearly 25%.
Experts suggest that the current climate allows for innovative financial products, spurred on by Trump’s administration. There is skepticism over the actual value provided by memecoin ETFs since their worth is largely speculative.
Context
The Trump Coin was launched by Donald Trump on the eve of his inauguration. Along with it, Melania Trump introduced her token, MELANIA, trading at approximately $4. Both tokens are classified as memecoins, lacking intrinsic value, relying on market speculation for their prices.
James Seyffart from Bloomberg Intelligence remarked, “This seems like issuers pushing the envelope with a new SEC administration while attempting a novel structure for digital asset exposure in an ETF format.”
Meanwhile, Eric Balchunas described the Trump ETF application as ‘surreal’, highlighting the unusual nature of such investments in the current market landscape.