TL;DR
- REX Shares has filed with the SEC to launch cryptocurrency ETFs, including Bitcoin, Ethereum, and the memecoin TRUMP, targeting institutional investors.
- The ETFs will invest at least 80% in a reference asset, and the TRUMP ETF will use a subsidiary to manage investments.
- Eric Balchunas from Bloomberg described the inclusion of TRUMP as “surreal.”
REX Shares has filed a series of applications with the United States Securities and Exchange Commission (SEC) to launch several exchange-traded funds (ETFs) related to various cryptocurrencies. The firm, in collaboration with Osprey, aims to offer investment options focused on Bitcoin and Ethereum, as well as more unusual assets like TRUMP, XRP, SOL, DOGE, and BONK, primarily targeting institutional investors.
Each of these ETFs is designed to invest at least 80% of its assets in a specific reference asset, ensuring substantial exposure to the performance of the selected cryptocurrency. The proposal includes a particular ETF for the TRUMP memecoin, which has gained notoriety in recent days. This fund will use a subsidiary called REX-Osprey TRUMP to manage investments and could expand its reach through futures and swaps, thus offering a more complex and diversified structure for investors.
A Surreal ETF
The announcement was shared by Bloomberg analyst Eric Balchunas, who described the situation as “surreal” due to the inclusion of the controversial TRUMP in the list of proposed assets. Despite its rapid growth, TRUMP’s market capitalization has shown significant volatility, briefly surpassing $15 billion before experiencing an abrupt drop of nearly $7.8 billion.
TRUMP Unaffected by the News
Unlike more established cryptocurrencies like Bitcoin and Ethereum, TRUMP’s price fluctuation has not been affected by the filing of these applications. However, REX Shares’ entry into the crypto ETF market could signal a shift in the perception and institutional adoption of less conventional digital assets.
These new financial products could provide a structured and regulated way to invest in cryptocurrencies, potentially attracting a broader base of investors interested in the potential of the crypto industry. Additionally, by offering options that cover both major cryptocurrencies and new memecoins, REX Shares seeks to diversify its portfolio and capitalize on the growing interest in the crypto market
