Rex Shares and Osprey Funds have filed proposals for a range of crypto exchange-traded funds (ETFs), including one focused on TRUMP, a memecoin launched by US President Donald Trump.
This filing, made on January 21, highlights an effort to introduce a new type of crypto fund catering to the booming memecoin market.
Beyond the TRUMP coin, Rex Shares and Osprey Funds also proposed ETFs for other memecoins like Dogecoin and more established assets like Bitcoin and Ethereum.
TRUMP ETF
The proposed ETF, named the Rex-Osprey Trump ETF, plans to invest heavily in TRUMP memecoin by dedicating 80% of its portfolio to these assets.
The fund intends to manage its exposure through direct holdings or derivatives, leveraging a Cayman Islands subsidiary for certain operations. While the filing provides no information about fees or a ticker symbol, it signals a push to bring memecoin-focused financial products to the mainstream market.
Analysts have raised concerns about the fund’s focus. Some argue that memecoins, given their speculative nature, might not offer long-term value to investors. However, the ETF’s legal structure under the 1940 Act, similar to existing crypto futures ETFs, could fast-track its approval and entry into the market by April 2025—provided regulators give their consent.
Eric Balchunas, a senior Bloomberg ETF analyst, said:
“These are 1940 Act filings and so (theoretically, if they aren’t disapproved) could hit the market in early April (75 days after filing) and beat the XRP, Solana, and Litecoin ETFs out [because] those have to file 19b-4s which have a 240-day clock.”
Meanwhile, the timing of this filing also reflects the shift in regulatory sentiment under acting SEC Chair Mark Uyeda.
Known for his pro-crypto outlook, Uyeda’s leadership could pave the way for innovative products like memecoin ETFs to gain approval more easily. If successful, the TRUMP ETF would be the first of its kind in the U.S., potentially setting the stage for more specialized crypto funds in the future.
Scammers Exploit Trump Token Hype
While the TRUMP memecoin has generated excitement, it has also become a target for scammers.
Blockchain security firm BlockAid reports that over 6,800 fake tokens using Trump’s name were launched on the same day as the official token. This marks a 206% increase in fraudulent activity, with many tokens designed to mislead investors into believing they were genuine.
Scammers have gone beyond targeting the TRUMP memecoin itself. Tokens referencing family members such as Melania and Barron Trump have also emerged, with the total number of Trump-themed scam tokens rising by 592%.
Notably, one fake Barron token even reached a market cap of $450 million before crashing, wiping out most of its value.
Moreover, the fraudulent activity extended to decentralized applications (dApps), with 91 fake Trump-themed dApps appearing within 24 hours of the memecoin launch. These apps exploited the hype to lure unsuspecting investors, representing a dramatic 14-fold increase in scam activity.
