Canary Capital Shakes Markets with First-Ever Spot ETF for Trump’s Meme Coin

Wall Street meets meme culture as institutional players dive headfirst into political-themed cryptocurrencies.

The ETF Gambit

Canary Capital's filing marks the first serious attempt to legitimize meme-based assets through traditional financial instruments. The move would allow retail investors to gain exposure to Trump's token without directly holding the volatile cryptocurrency—blurring the lines between speculative internet jokes and regulated investment products.

Market Implications

Approval could flood the meme coin with unprecedented institutional liquidity while testing regulators' tolerance for politically-charged digital assets. Critics argue it's another example of finance chasing hype over substance—because nothing says 'stable investment' like bundling political sentiment into exchange-traded packages.

The decision now rests with regulators who must weigh innovation against the specter of turning election cycles into tradable commodities.

Canary’s TRUMP ETF Filing Pledges Full Token Backing

Notably, Canary’s application was filed under the Securities Act of 1933, meaning the Canary TRUMP Coin ETF WOULD be backed entirely by reserves of TRUMP tokens held under regulated custody.

ETF experts quickly questioned the likelihood of approval.

Bloomberg’s Eric Balchunas noted that spot ETFs typically require a futures market for the underlying asset to trade for at least six months before the SEC signs off.

No such TRUMP futures products currently exist. Still, Balchunas suggested TRUMP could eventually appear in a diversified ETF filed under the 1940 Act.

I don't know how this gets through tho bc you need to have futures for at least 6mo on an exchange. That doesn't exist as far as I can see. Alt, I could see it in a 40 Act product.

The SEC’s review of the application comes as the agency faces unusual circumstances. Since January, the regulator has been seen as taking a softer approach to crypto under Trump’s leadership.

In February, Republican SEC commissioner Hester Peirce remarked that the TRUMP token likely fell outside the SEC’s jurisdiction.

Soon after, the commission declared that all meme coins were not securities, placing them beyond its direct oversight.

If approved, Canary’s product would be the first ETF in U.S. history linked directly to a sitting president’s personal crypto project.

Analysts say such a MOVE would cement meme coins as part of mainstream financial markets while raising unprecedented questions about political influence over financial regulation.

The TRUMP token itself has endured steep volatility, plunging over 70% since its January debut.

Despite that decline, analysts predict the SEC will approve at least some spot meme coin ETFs before the end of the year, though the regulator has delayed final decisions on several recent applications.

Canary’s filing underscores how quickly meme tokens are moving from internet subculture into regulated financial products.

Grayscale, Bitwise Among Firms Updating Filings for Spot XRP ETFs

A wave of asset managers filed updated paperwork for spot XRP ETFs on Friday, signaling a renewed push to secure approval from the SEC.

Grayscale, Bitwise, Canary, CoinShares, Franklin, 21Shares, and WisdomTree all submitted amendments for their proposed spot XRP ETFs.

While the SEC has yet to approve any spot XRP ETF, the filings suggest that firms are responding to ongoing regulatory feedback.

As reported, Grayscale is pushing ahead with its bid to launch a Dogecoin exchange-traded fund, revealing the ticker “GDOG” in its latest US Securities and Exchange Commission filing.

The company said Friday it plans to rename its existing Grayscale dogecoin Trust to the Grayscale Dogecoin Trust ETF.