La memecoin TRUMP makes its entrance on Wall Street

Canary Capital has formally initiated the registration procedure for an ETF on the memecoin TRUMP. The fund, which closely follows the fluctuations of the controversial token dedicated to the President of the United States, aims to strengthen the presence of memecoin among regulated financial products. 

In the meantime, curiosity grows for the response of the SEC, known for its cautious approach to this type of asset. According to data collected by market analysts, the phenomenon of memecoins, although risky, is gaining increasing relevance in the strategies of asset managers.

Canary Capital turns the spotlight on: official request for the ETF on the memecoin TRUMP

The idea put forward by Canary Capital is to offer investors regulated access to one of the most discussed digital assets in recent years, avoiding the need to purchase and directly manage the TRUMP token. By retaining the complexity associated with digital wallets, security, and volatility, the fund is configured as an institutional environment. It should be noted that in this way, memecoins become accessible even to those who prefer the transparency and guarantees typical of traditional finance.

Precisely the ETFs on cryptocurrencies have been designed to break down the technical barriers that in the past have limited access to this class of investments. According to what is reported by SEC – Digital Assets, the demand for “hybrid” products of this type is growing rapidly, stimulated by the interest in new forms of financial innovation.

The file related to the ETF Trump Coin has been filed with the Delaware Department of State and is now under review by the Securities and Exchange Commission. On previous occasions, the SEC has taken several months to evaluate similar proposals. This process includes:

• Evaluation of transparency and risk management procedures;
• Verification of safety and traceability criteria of the underlying cryptocurrencies;
• Control of token custody systems and protection of investors.

According to industry sources, the current orientation of the SEC, under the new leadership, appears more open compared to the past, while maintaining a high focus on highly speculative assets like memecoin. Regulatory experts are indeed evaluating how to provide more effective protections without stifling the innovation of these instruments.

Market and ranking: Trump Coin in the top 50 cryptocurrencies by market capitalization

The latest data from CoinMarketCap report that the TRUMP token reached a capitalization exceeding 1.9 billion dollars in June 2024, positioning itself around the 54th position in the global ranking of cryptocurrencies by market value. In the memecoin landscape, even without official confirmations regarding the fifth position, it is certainly one of the most significant players by capitalization.

• Among the major memecoins by market capitalization
• 54th in the overall cryptocurrency ranking
• Current value: approximately 1.9 billion dollars

An interesting aspect is how media dynamics and social phenomena now directly influence capital flows in the crypto sector, as confirmed by recent market reports.

Battle among asset managers: not only Canary Capital on the new Trump crypto ETF

The competition to launch a ETF linked to Trump Coin is already heated. In addition to Canary Capital, Osprey Funds and REX Shares have also filed official applications with the SEC in the early months of the year, demonstrating the growing interest from U.S. asset managers towards a rapidly expanding segment. Industry analysts note that this race reflects the willingness of institutional investors to explore new opportunities in regulated memecoins.

This succession of requests signals a tight challenge to capture the attention and capital of investors, leveraging media appeal and the rapid rise of memecoins in the fintech context.

The prospects according to experts: liquidity and mainstream acceptance on the horizon?

According to Dmitrij Radin, Chief Technology Officer of Fidium:

“The approval of ETFs on memecoin becomes more likely with a SEC more receptive towards cryptocurrencies compared to the past”.

It is not just a matter of regulatory deadlines: a broader consensus on the value of crypto ETFs in the financial ecosystem is also awaited. Internal data collected by Fidium shows a growing interest from retail and institutional investors towards innovative financial instruments like these ETFs.

Among the possible effects resulting from the introduction of this tool, analysts highlight:

• Greater accessibility for private investors;
• Increase in liquidity on the main trading platforms;
• Increase in institutional visibility for assets with high popular and speculative content.

They are primarily liquidity and transparency, two factors that could influence the current dynamics of this sector, notoriously perceived as “risky” but potentially in a phase of formal legitimization.

How ETF registration on cryptocurrencies and memecoin works: what the SEC observes

The registration procedure of a cryptocurrency ETF involves a set of formal steps in which the competent authorities examine:

• The mechanisms of risk management;
• The solutions adopted for the secure custody of the tokens;
• The processes of traceability and auditing;
• The adequate compliance standards aimed at preventing fraud and market manipulation.

In the case of the fund proposed by Canary Capital, obtaining the green light from the SEC would represent an important precedent for the entire memecoin sector, opening new paths for market development. Historical experience shows how regulatory consensus is the basis for greater stability and sustainable development of this sector.

A look into the future: risks and opportunities of an unprecedented turn

The introduction of crypto ETFs inspired by media phenomena like Trump Coin redefines the boundary between digital assets and traditional financial instruments, marking a significant evolution in the possibilities for investors, managers, and regulators. The SEC’s approval is not just a technical step: it could initiate a discussion destined to influence institutional strategies in global markets.

Awaiting a verdict that could arrive in the coming months, tension remains high in the sector, ready to seize any news. The success or rejection of this ETF will certainly have an impact on future initiatives related to cryptocurrencies with strong media attention.