President Donald Trump’s memecoin may soon have an exchange-traded fund (ETF) in the U.S., after Canary Capital became the first to file for a product designed to buy and hold the token. Analysts, however, are questioning how the fund will navigate regulatory approval.
In a Tuesday filing with the Securities and Exchange Commission, Canary revealed that its Canary Trump Coin ETF would directly hold the Official Trump token, providing investors with exposure to it.
Trump launched the cryptocurrency in January, just days before leaving the White House. The token is currently ranked 55th by market capitalization and has dropped 69% from its all-time high of $46.50 on January 19, the day before Trump’s inauguration, according to TradingView.
The token has stirred controversy, with critics warning it could allow individuals to anonymously purchase influence with the president and raising concerns about potential conflicts of interest, given Trump’s ability to shape crypto policy.
Analyst Questions Whether ETF Will Clear Approval
Canary must file additional paperwork before its product can enter the SEC’s standard approval process, which typically takes nearly a year.
Bloomberg ETF analyst Eric Balchunas noted on X Tuesday that he doubts whether the ETF will “get through,” as ETFs generally require a futures product to be listed on an exchange for at least six months.
“That doesn’t exist as far as I can see,” Balchunas said, though he added that the fund could qualify under the Investment Company Act of 1940—commonly referred to as a “40 Act” fund.
Unlike other crypto ETFs, which must submit Form S-1 and Form 19b-4 to register with and inform the SEC, a 40 Act fund follows a different regulatory route. This is the same method REX Shares used to bring its Solana staking ETF to market.
REX has also filed for an ETF tracking TRUMP under the 40 Act, which would purchase shares in an offshore company holding the token. ETF Store president Nate Geraci described the approach as “a regulatory end-around.”
REX CEO Warns ETF Issuers About “Risky” Cryptocurrencies
Canary’s filing noted that the fund may not be suitable for investors who cannot “accept more risk than may be involved with exchange-traded products that do not hold $Trump.”
“The shares are speculative securities,” the filing added.
The filing follows comments Monday from REX Financial CEO Greg King, who cautioned ETF issuers to be selective about which cryptocurrencies their funds track, saying the market “gets pretty sketchy below the top 10, certainly below the top 20.”
Canary Capital formally established the legal entity for the Trump Coin ETF with the Delaware State Department on August 14.
