Amid the excitement generated by President Donald Trump and First Lady Melania’s latest memecoin launches, REX Shares and Osprey have turned heads by filing for ETFs associated with some of the most popular cryptos: TRUMP, Bonk Inu (BONK) and Dogecoin (DOGE).
New ETFs focused on memecoins and major cryptos
The submitrevealed by James Seyffart, a Bloomberg ETF expert, also includes ETFs for major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana SOL) and XRP.
Notably, these products are governed by the 1940 Act, similar to crypto futures ETFs, allowing them to hold a mix of derivatives and assets through a subsidiary in Cayman.
Seyffart marked that this structure is reminiscent of strategies used in commodity ETFs, designed to minimize tax complications, particularly avoiding K-1 forms, which can reportedly complicate tax filing for investors.
The newly proposed funds are intended to provide exposure to their respective reference assets through investments in a subsidiary organized in the Cayman Islands called the REX-Osprey™ TRUMP (Cayman) Portfolio SP.
This subsidiary will be wholly owned by the fund and is expected to hold no more than 25% of the fund’s total assets. This approach not only enables diversification investment strategies but also helps the fund meet the revenue source requirements of the Internal Revenue Code.
The number of ETF applications for digital assets rises to 33: experts predict further growth
The fund’s structure is also classified as “non-diversified” under the Investment Company Act of 1940, giving it more flexibility in its investment decisions.
In addition, the fund plans to allocate its remaining assets to various cash investments, such as US Treasury bonds, money market fundsand other high quality cash equivalents intended to increase liquidity and provide protection for the fund’s investments.
The momentum of these filings reflects a broader trend in the crypto market, as Seyffart’s colleague Eric Balchunas says: pointed out that the number of crypto ETFs filed with the SEC has now reached an impressive 33.
The recent regulatory environment has led to a doubling of filings since Gary Gensler’s departure from the US Securities and Exchange Commission (SEC) on Friday, with expectations that this number could reach 50 in the coming weeks.
However, Balchunas cautions that while the influx of new ETFs is exciting, the bulk of investment capital will likely continue to flow into the spot market. Bitcoin ETFs.
Balchunas compares the crypto market to the commodities sector, where gold remains dominant, while silver and lesser-known commodities such as palladium and aluminum occupy niche positions.
In this landscape, mainstream cryptocurrencies such as Bitcoin and Ethereum are expected to attract the bulk of investment, while memecoins may find themselves in a more marginal position, the expert further suggested.
At the time of writing, the president’s official memecoin, TRUMP, was trading at $39,044, down 50% from its peak of $79 over the weekend.
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