Canary Capital has filed to launch an exchange-traded fund (ETF) tracking the price of the $Trump meme coin, a cryptocurrency linked to US President Donald Trump.

The firm submitted its application to the US Securities and Exchange Commission, which must approve the ETF before trading can begin.

If approved, the ETF would give investors exposure to the $Trump coin through a regulated product.

Meme coins like $Trump are highly volatile, with prices often driven by online trends rather than underlying technology or fundamentals.

The $Trump token was launched just before Trump’s inauguration and quickly gained attention on social media, leading to rapid listings on major exchanges.

Some ethics experts have raised concerns about potential conflicts of interest.

Canary Capital has not disclosed expected fees or the exchange for the ETF.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Crypto ETF approvals face historically challenging regulatory path

Canary Capital’s filing enters a regulatory landscape where crypto ETFs have faced significant hurdles from the SEC.

The agency previously rejected the Winklevoss twins’ Bitcoin ETF proposal, citing concerns over market manipulation and investor protection, with the SEC noting that over 75% of Bitcoin trading occurs outside U.S. exchanges 1.

More recently, the SEC has repeatedly delayed decisions on multiple crypto ETF proposals, including postponing reviews of Bitcoin ETFs from VanEck SolidX, Bitwise Asset Management, and Wilshire Phoenix 2.

Even Ethereum ETF proposals with staking components from major firms like Franklin Templeton and Grayscale have faced delays, as regulators scrutinize how staking aligns with federal securities laws 3.

This pattern suggests that even with Paul Atkins taking a softer stance on crypto, the approval process for any crypto ETF remains complex and uncertain.

2️⃣ Political crypto ventures intensify regulatory and ethical scrutiny