• Osprey Funds and Rex Shares have submitted proposals to the SEC for ETFs that include popular meme cryptocurrencies such as DOGE and TRUMP.
• This proposal aligns with major regulatory shifts post-Gary Gensler’s SEC tenure, potentially mainstreaming speculative cryptocurrencies.

In an unprecedented move on January 21, 2025, two prominent asset managers, Osprey Funds and Rex Shares, have lodged a historic application with the U.S. Securities and Exchange Commission (SEC).

Their objective is clear: to establish Exchange-Traded Funds (ETFs) that incorporate a range of major cryptocurrencies, including the notably volatile meme coins.

A Regulatory Paradigm Shift

This initiative represents a dramatic shift in the U.S. regulatory environment. Under the tenure of Gary Gensler, meme coins were viewed with considerable skepticism by regulatory authorities.

However, today’s landscape paints a different picture where these same tokens might benefit from inclusion in official U.S. ETFs. Among the cryptocurrencies listed in these ETF proposals are Dogecoin (DOGE), TRUMP, and BONK.

Interestingly, Donald Trump himself appears to be detached from the TRUMP meme coin, having recently mentioned at a press conference that he

“does not know much about it.”

According to the filings, these ETFs will directly hold the respective cryptocurrencies and their derivatives, committing to invest at least 80 % of their net assets in these instruments.

This development is part of a broader narrative, with the TRUMP meme coin alone having fluctuated in value dramatically since its introduction on January 18, skyrocketing from a valuation of $14.5 billion to about $6 billion within days.

Expanding Horizons in Crypto Finance

Aside from meme coins, Osprey Funds and Rex Shares are also seeking to create ETFs for established cryptocurrencies like Bitcoin, Ethereum, Solana, and XRP. Rex Shares is already known for offering the MSTU ETF with a 2x leverage on MicroStrategy, and now, it is significantly expanding its portfolio into previously uncharted crypto territories.

This surge in activity comes against the backdrop of a comprehensive regulatory overhaul, signaled by Paul Atkins replacing Gary Gensler as the head of the SEC. Atkins, noted for his balanced perspective on blockchain technology, may facilitate the emergence of these innovative financial products.

This initiative coincides with Donald Trump’s endeavor to position the United States as the

“cryptocurrency capital of the world.”

With this vision, the SEC has recently established a Crypto Assets Task Force, led by Hester Peirce. This team is tasked with developing a regulatory framework tailored to crypto assets.

The request for “meme coin ETFs” highlights the rapid evolution of the sector, where tokens initially seen as purely speculative might now transition into institutional financial assets. The challenge for the SEC will be to balance investor protection with financial innovation, a task set for the newly formed task force.

As these ETF proposals sit with the SEC, their potential approval could set a historical precedent in financial history, redefining the boundaries between technology, regulation, and financial markets. All eyes are now on the SEC, whose decision could be a landmark in the acceptance and integration of speculative cryptocurrencies into formal financial systems.

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