By Niket Nishant (Reuters) -Digital asset manager Canary Capital on Tuesday filed to list an exchange-traded fund tracking the price of the $TRUMP meme coin, a crypto token whose fortunes intertwine with U.S. President Donald Trump. The ETF could let investors tap into a politically charged meme coin, and allow Canary to package sentiment-driven speculation […]
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Canary Capital seeks to launch Trump meme coin ETF, betting on political hype
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By Niket Nishant
(Reuters) -Digital asset manager Canary Capital on Tuesday filed to list an exchange-traded fund tracking the price of the $TRUMP meme coin, a crypto token whose fortunes intertwine with U.S. President Donald Trump.
The ETF could let investors tap into a politically charged meme coin, and allow Canary to package sentiment-driven speculation into a regulated investment product.
If approved by the Securities and Exchange Commission — whose Chair Paul Atkins has taken a softer stance towards crypto — the ETF could begin trading in the coming months.
Meme coins’ value is dictated by internet buzz or cultural relevance rather than technological utility or fundamentals. The highly volatile tokens can offer outsized returns but come with risks.
The $TRUMP coin was launched three days before the president’s inauguration in January. It took off on social media, and a Reuters analysis in July found that major crypto exchanges rushed to list it far faster than other meme tokens.
The token has also come under criticism from some ethics experts, who argue it presents a serious conflict of interest for Trump, and from business leaders who say memecoins undermine the credibility of the crypto industry.
The White House, however, has denied wrongdoing, stating that the president’s assets are held in a trust managed by his family and that there is no conflict of interest.
“The Trump memecoin ETF proposal exemplifies the speculation that is distracting from blockchain’s real potential,” said David Roos, partner at venture capital firm Core Innovation Capital.
Canary said its ETF would give investors exposure to the memecoin without having to hold it directly, which it said could be more efficient for some.
It did not disclose the fees it expects to charge on the ETF, or the exchange on which the ETF will be listed.
Its latest filing came just a day after it filed for another U.S.-focused crypto ETF.
(Reporting by Niket Nishant in Bengaluru; Editing by Sahal Muhammed and Vijay Kishore)