TRUMP Memecoin Drives Crypto ETF Filers Into High Gear as SEC Climate Shifts

Key Takeaways

• REX Financial filed for a TRUMP spot ETF.
• Approval could make it the lowest market cap token with an ETF.
• Experts caution that a friendlier SEC doesn’t guarantee blanket approvals.

Crypto exchange-traded fund (ETF) filers are wasting no time pushing the boundaries with the newly restructured Securities and Exchange Commission (SEC).

Proposals that would have been unthinkable under the previous administration are now landing on the regulator’s desk.

In a surprising twist, Donald Trump’s official memecoin —launched just a week ago and already causing ripples across the crypto market—has attracted multiple ETF bids from asset managers eager to capitalize on the shifting regulatory climate.

Is a TRUMP ETF Feasible?

On Tuesday, Jan. 21, REX Financial and Osprey Funds filed multiple ETF applications with the SEC, including one for the TRUMP memecoin.

The filings, made under the 1940 Act, suggest that the proposed ETF would combine derivatives, assets, and holdings via a Cayman subsidiary.

This structure mirrors strategies used for commodity ETFs. Despite this, the odds of approval seem slim.

Bloomberg ETF expert Eric Balchunas pointed out that the filing could theoretically launch in April, beating out ETFs for more established tokens like XRP and Solana.

As for the SEC’s reaction, Balchunas is unsure how the regulator will respond.

The early forecast suggests the SEC is likely to rain on the parade of the TRUMP memecoin ETF.

Given the regulator’s long history of rejecting Bitcoin ETFs —even when BTC’s market cap surpassed a trillion dollars—it seems improbable that a mere five-day-old meme token with a $10 billion valuation will get the green light.

Pushing Boundaries With Meme ETFs

The surge in memecoin ETF filings reflects a broader attempt to test the regulatory waters under Trump’s administration.

Bloomberg analyst James Seyffart sees this as a move to push boundaries.

The ETF expert warned that even a more lenient SEC might draw the line at approving a memecoin ETF.