Investment managers Rex Shares and Osprey Funds have filed an application to launch an ETF based on the Movement token, part of the Ethereum Layer 2 network.
Establishing the First Movement-Based ETF
In a prospectus filed on Monday, the fund will allocate 80% of its assets into MOVE tokens or related derivatives via the REX-Osprey MOVE Subsidiary. Approval from the SEC is required before proceeding. Movement’s co-founder Rushi Manche emphasized the importance of this step for the company.
Development and Controversies Around Movement
Movement was built using the MoveOS programming language initially intended for Meta. The network recently incorporated RPC service, with a core mainnet release expected by March 10. The ecosystem will launch the Cornucopia program to fund the public mainnet but the team has faced criticism over political affiliations.
SEC's Role and Movement’s Future
Under Acting Chair Mark T. Uyeda, the SEC has been more welcoming towards the crypto industry, though it has yet to authorize ETFs for anything other than Bitcoin and Ethereum. The Movement ETF filing will undergo the approval process.
The Movement ETF application could serve as a template for future digital assets, but it remains to be seen how the SEC’s new approach will impact the crypto industry.
