Investors Are Going Wild Over Trump’s New Coin! You Won’t Believe What Happens Next!

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What to know:

  • In a most curious turn of events, the investment managers Rex Shares and Osprey Funds have decided to file paperwork for a plethora of crypto exchange-traded funds (ETFs), including those whimsical memecoins that seem to sprout like mushrooms after a rain.
  • Among these audacious proposals is a fund that would track the newly minted Trump coin, a memecoin birthed by none other than President Donald Trump himself. Ah, the audacity!
  • In a display of sheer market theatrics, TRUMP has managed to amass a staggering $17 billion in trading volume over the past 24 hours, even as it plummeted nearly 25% during the same time. Truly, a rollercoaster of emotions! šŸŽ¢

It appears that crypto issuers have taken a page from the book of absurdity, believing that with Donald Trump at the helm, the sky is the limit! Or perhaps they are simply testing the waters of sanity.

On this fine Tuesday, the ETF issuer Rex Shares and the crypto asset manager Osprey Funds have taken it upon themselves to file for a multitude of crypto-focused ETFs, including the illustrious Trump ETF, as revealed in a rather official filing with the Securities and Exchange Commission (SEC). How delightfully bureaucratic!

This ETF, dear reader, would track the price of TRUMP, the memecoin that made its grand debut just days before the President’s inauguration. In a twist of fate, the coin has seen a trading volume that would make even the most seasoned traders raise an eyebrow, while simultaneously experiencing a drop that could only be described as tragicomic.

And let us not forget the First Lady, Melania Trump, who has also joined the fray with her own token, MELANIA, currently trading at a princely sum of $4. Both tokens, being memecoins, possess the intrinsic value of a soggy piece of bread. Traders, it seems, are merely wagering on the whims of fate, hoping for a rise or a fall. How quaint! šŸ„–

One must ponder, what value would an ETF tracking such tokens offer to the unsuspecting buyer? A riddle wrapped in an enigma, indeed!

ā€œThis to me seems like issuers pushing the envelope with a new SEC administration while at the same time trying a novel structure for providing exposure to digital assets in an ETF wrapper,ā€ mused James Seyffart, an ETF analyst at Bloomberg Intelligence, with a twinkle of sarcasm in his eye.

But wait, thereā€™s more! The issuers have also filed documents to launch an ETF tracking the price of Dogecoin (DOGE), another memecoin that has captured the hearts of many. In a rather amusing twist, one of Trumpā€™s first executive orders was to establish a “Department of Government Efficiency,” which, at the time of writing, features a picture of the Dogecoin mascot on its website. Efficiency, indeed! šŸ¶

Under the watchful eye of former Chair Gary Gensler, the SEC was notoriously cautious when it came to approving ETFs tracking cryptocurrencies. It took years for issuers to receive the coveted green light for a spot bitcoin (BTC) ETF and a spot ethereum (ETH) ETF. One can only wonder how swiftly these latest applications, which also include ETFs tracking BONK (another memecoin), XRP (the Ripple-associated token), and SOL (a layer 1 blockchain), might be approved. A game of patience, perhaps?

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas has aptly described the Trump ETF application as ā€œsurreal.ā€ And indeed, in this circus of finance, one can only sit back and marvel at the spectacle! šŸŽŖ

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2025-01-21 19:45