The application for launching an ETF on Donald Trump's token raises disputes regarding its legality and risks for investors.
Overview of the Trump Coin ETF
Canary Capital has filed for an ETF that will directly relate to the official Donald Trump token, currently trading at around $8.46. The token was launched in January but has since lost nearly 70% of its value, falling from a record high of $46.50.
Analyst Warnings
Analysts, including Bloomberg's Eric Balchunas and ETF Store president Nate Geraci, expressed doubts about the regulatory approach to this ETF. Balchunas pointed out that the token has not followed the typical path and lacks the necessary requirements for ETF inclusion. Additionally, REX Financial CEO Greg King warned issuers against careless asset selection.
Selective ETFs and the Meme Coin Market
Greg King also emphasized the importance of caution when selecting digital assets for backing. He noted that a significant portion of cryptocurrencies outside the top 20 remains unreliable. However, he identified Solana as a promising blockchain capable of competing with Ethereum in the stablecoin sector.
Considering the opinions of analysts and the current state of the crypto market, the launch of the ETF on Donald Trump’s token remains highly questionable due to the high risks and instability of this asset.
