At the Solana Breakpoint event in Singapore, the Bonk Inu team announced the launch of an exchange-traded product (ETP) in the US. The product will be available to both institutional and retail investors.
New Product Launch
The Bonk Inu team announced at the Solana Breakpoint event that they are launching an ETP in the US. The product will trade on the over-the-counter (OTC) markets under the BONK ticker and was created in partnership with Osprey Funds. The official launch date for the ETP is yet to be announced. The announcement generated some excitement within the BONK community, causing the token to see a minor increase in value earlier today, although it later declined by about 1%, continuing a trend of a 60% decrease from its peak value.
Investment Conditions in BONK Trust
While the Bonk Inu team's announcement did not provide much information about the new ETP, the trust sponsor Osprey Funds provided more details on their website. The BONK Trust is for accredited investors only, who must have an annual income of at least $200k (or $300k for couples) and a net worth over $1 million, or be professional investors. The minimum investment amount is $10,000, cutting out most retail traders but attracting institutional capital. Copper serves as the custodian for the trust, which is managed by Theorem Fund Services. The fund is currently available for private subscriptions, with plans to apply for listing in the future.
Popularity of Crypto ETPs and ETFs
The launch of BONK Trust aligns with the growing popularity of crypto-focused ETPs globally and in the US. This year, the U.S. Securities and Exchange Commission (SEC) approved spot ETFs for Bitcoin and Ether. Over the year, total assets under management (AUM) for crypto ETPs surpassed a record high of over $100 billion in March 2024, doubling from $51 billion at the end of 2023. Most of the current AUM is in Bitcoin and Ether, which are publicly approved for ETF trading in the US. Future approvals of other altcoins are anticipated, especially if regulatory changes occur.
The launch of the new BONK Trust product could attract significant institutional investment and contribute to the growing popularity of crypto assets among investors. The current popularity of crypto ETPs and ETFs indicates a rising interest in these financial instruments.
Comments