Canary Capital has announced its application for an ETF linked to the Trump memecoin, generating significant interest in the market.
ETF Application by Canary Capital
Canary Capital has filed an official application to create an ETF associated with the TRUMP memecoin, marking a rare regulatory step for such assets. A statutory trust for the ETF was registered with the Delaware State Department. This registration is a necessary step before submitting a formal S-1 filing to the U.S. Securities and Exchange Commission (SEC). While the registration does not guarantee a market entry, it is a requirement for further action.
Comparison with Other ETF Applications
The application from Canary Capital follows similar submissions from Osprey Funds and REX Shares, which aim for approval of a memecoin ETF. If approved, the ETF from Canary Capital would become the third ETF linked to meme coins after proposals dedicated to Dogecoin. The asset management approach of the company stands out among others, as they aim to develop ETF based on smaller, more volatile meme coins.
The Meme Coin Market and Its Impact
Following news of the Delaware registration, the price of the TRUMP token surged over 10%, reaching $10.20 before settling back to $9.52. Trading volume also saw a sharp rise of 46.79%. Meme coins like TRUMP still captivate retail traders, and expectations of the ETF launch may attract institutional investments that have been absent from this market.
Canary Capital's ETF application for meme coins like TRUMP might change market dynamics, opening new opportunities for investors and traders.
