Canary Capital's Bold Move With Trump Memecoin ETF

By: Eliza Bennet

Canary Capital, a prominent asset management firm, has taken a bold step by registering the Trump Coin ETF in Delaware. This initiative positions Canary Capital as one of the first firms to propose a spot exchange-traded fund (ETF) specifically tracking a meme-based cryptocurrency. According to official state records, the Delaware incorporation process was finalized on August 13. Registering such an ETF is generally seen as a precursor to filing more comprehensive paperwork with the U.S. Securities and Exchange Commission (SEC), including an S-1 application and a 19b-4 form by the listing exchange.

This proposed ETF is set to focus on the Solana-based TRUMP token, aiming to provide institutional investors with direct exposure. By doing so, Canary Capital seeks to inject much-needed liquidity into the market of a token previously driven mainly by retail investors. If approved, the ETF could pave the way for greater regulatory oversight in a domain that has largely been speculative. With a market capitalization of $1.9 billion, TRUMP ranks 49th among cryptocurrencies and is the fifth-largest memecoin by market cap according to CNBC indexes.

Traditional finance entities have generally concentrated on digital assets like Bitcoin and Ethereum. However, Canary Capital's strategy is to focus on more niche, volatile meme coins, marking it as an unconventional player in the crypto ETF landscape. The CEO of Canary Capital has articulated this approach as an opportunity to invest in emerging, albeit often overlooked, digital assets, thus expanding the range of financial products available to potential investors.

As the battle for crypto ETF approvals continues, the Trump Coin ETF represents Canary Capital's commitment to diversifying the types of digital assets available to investors. The firm has also filed for a PENGU ETF, another attempt to capitalize on smaller altcoins. This approach could redefine the types of assets included in ETFs going forward, prompting both excitement and skepticism about the future of cryptocurrency investments. With memecoins being categorized as commodities by the SEC, the approval process might see fewer hurdles than those faced by securities-based tokens.