The US president may not know much about $TRUMP — his own memecoin — beyond launching it and hearing it’s “successful.”
But now, the token that mooned, crashed and somewhat stabilized is angling for an ETF.
Asset managers REX Advisers and Osprey Funds applied on Tuesday for permission to launch seven new crypto ETFs, including those tied to $TRUMP and others like Dogecoin and BONK.
Osprey declined to comment and REXShares did not immediately respond to MONIIFY’s request for comments on their applications.
If approved by the US Securities and Exchange Commission, memecoins could inch closer to legitimacy as far as mainstream investing goes.
No surprises here
The timing is no accident.
Trump has promised a crypto-friendly administration, and the SEC is finally warming up to the industry, even forming a task force to clarify regulations.
Fund managers now seem eager to test the waters with ideas that would’ve been unthinkable just a few years ago. Since Gary Gensler’s departure, crypto ETF applications have doubled.
Read more: These are the altcoins riding Trump’s MAGA Wave
The industry’s going to get an early, clear understanding of what’s a go and what’s not with the new SEC, Mohammad Raafi Hossain, CEO of crypto platform Fasset, tells MONIIFY, adding that it’s also good PR for the ETF issuers.
And the PR might be working. Memecoin traders — who think 2025 is the memecoin year — are eating it up, with Dogecoin, $TRUMP and BONK seeing a midweek pump of 6% to 13% on the ETF news.
What are the chances?
Getting approval for memecoin ETFs won’t be easy. Even Bitcoin and Ether ETFs took years of legal wrangling. And memecoin trackers would probably have to wait in line behind more established coins like Solana.
It’s unclear whether the SEC would approve ETFs associated with memecoins, which are considered highly volatile or prone to manipulation, possibly making it harder for them to get the green light, Julian Beltran, CTO of stablecoin firm Stabolut, tells MONIIFY.
Read more: Tiny Greenland bank gets big Trump bump
Tim Delhaes, CEO of Grindery, is not buying anyone’s argument that ETFs will make memecoin investing safer. “Wrapping volatile tokens in an ETF doesn’t make them less risky, just more accessible,” he tells MONIIFY.
The SEC’s standards for ETF approval add another layer of difficulty.
ETFs require liquidity, transparency and minimal manipulation risk, explains James Davies, CEO of Crypto Valley Exchange. Memecoins fail on most counts and fixing that would require a legal overhaul — which is not happening anytime soon.
Memecoins ≠ safe bets
To keep it real: Bitcoin or Ether ETFs added a layer of legitimacy to crypto, but memecoin ETFs could spark chaos. Retail investors often use ETFs for low-risk exposure, but memecoins are a different beast.
Case in point: $TRUMP started at pennies, shot up to $73, and is now sitting around $40 — a 40% drop in less than a week.
Kunal Chowdhry, CEO of Apollo Singapore Investments, warns that this isn’t a set-it-and-forget-it investment.
He tells MONIIFY that while $TRUMP shows crypto’s mainstreaming potential, the volatility could wreck retail investors, eroding trust in both crypto and Trump.
Read more: Memecoin mayhem: $TRUMP and $MELANIA spark crypto chaos
“Political leaders launching memecoins might be seen as prioritizing personal financial gain over responsible governance,” he adds.
REXShares and Osprey’s SEC filing doesn’t sugarcoat it: “TRUMP is a relatively new innovation and is subject to unique and substantial risks.”
For now, the likelihood of memecoin ETF approvals remains unclear. If approved, though, ETFs could offer benefits like regulated exposure, easier access and potentially higher liquidity, Alvin Kan, COO of Bitget Wallet, tells MONIIFY.
But it all eventually boils down to one’s risk appetite and belief in their cultural impact, he adds.
Is the cultural clout of tokens like $TRUMP worth the wild ride?
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
