SEC Filing Could Open Door for Politically Driven TRUMP ETF

Digital asset manager Canary Capital filed an application with the U.S. Securities and Exchange Commission to launch an exchange-traded fund that would track the price of the TRUMP memecoin. This highly volatile cryptocurrency has gained traction due to its association with the U.S. President, making it a culturally relevant asset.

Assuming the SEC accepts the application , this ETF could start trading shortly. This opens the door for investors to participate in memecoins fueled by politics and social media.

The Behavior of Meme Coins and the Case for an ETF

Cryptos such as TRUMP gain their value not from a robust technology backbone or solid financial metrics, but from a passing meme or cultural hook. Such coins are notorious for their wild price gyrations. For investors, coins such as these offer a brand new and very different approach to investing in the buzz and volatility around it.

Canary Capital’s proposed ETF is an attempt to tame this wild west of investment into a proper structure, regulated and familiar. The company’s filing explains how the ETF should operate, mirroring the price of the memecoin and giving investors a chance to dip into the adrenalin-fueled niche of politically motivated cryptocurrencies. Should the SEC approve this proposal, it would mark a significant step in bringing politically charged crypto assets to mainstream investment markets.

Background of TRUMP Coin

In the beginning of the year, the memecoin was strategically introduced just before the inauguration of President Donald Trump . The new coin quickly went viral on social media which substantially increased the coin’s value.

In July, a Reuters analysis showed that big cryptocurrency exchanges rushed to list the coin unlike any other memecoin they refused or delayed to list. The fast listing and interest in the coin show the cultural significance the coin has especially because of the political figure it was made after.

While the Trump coin continues to generate headlines, it is also facing blowback from a cadre of ethics analysts. They’ve flagged the coin as a possible conflict of interest for Trump. These commentators seem worried that the memecoin might sway political action or serve as an advertisement for the president's brand. The White House has pushed back on these claims, stating the former president’s properties are handled by a family trust and there are no conflicts of interest.

Filing of ETFs and Crypto Strategy in General

This filing of ETFs for memecoin is not Canary Capital’s only recent actions. The company has also filed a separate ETF that focuses on crypto tokens manufactured or minted in the U.S.

This is part of a larger effort by Canary to provide investors with more regulated avenues to access the increasingly well-known and risky cryptocurrency world. Canary Capital is attempting to fuse the unpredictable nature of memes with the formal ETF structure to offer new investment options in the digital asset realm.