Canary Capital Trump Coin ETF Raises Regulatory Doubts
Canary Capital has filed to launch a Trump Coin ETF that would directly hold the Official Trump token (TRUMP). Trading at around $8.46 and ranking 55th by market cap, TRUMP has fallen nearly 70% from its January high of $46.50. Analysts, including Bloomberg’s Eric Balchunas and ETF Store president Nate Geraci, question the fund’s unconventional regulatory path, calling it a potential “regulatory end-around” under the Investment Company Act of 1940. REX Financial CEO Greg King warns issuers to avoid low-tier tokens, noting cryptocurrencies below the top 20 are “sketchy.” The ETF’s legal entity in Delaware on Aug. 14 marked the first step toward approval, but high speculation risks may deter cautious investors.
Bearish
Regulatory uncertainty around the Trump Coin ETF is likely to dampen speculative demand for meme coin products in the near term. Similar ETF filings using the Investment Company Act of 1940 have faced prolonged review, delaying approval and suppressing trading volumes. Analyst warnings about backing low-tier tokens underscore broader market skepticism. While a future approval could legitimize novel crypto ETFs, the current doubts and high volatility of TRUMP suggest bearish short-term pressure. Long-term market impact remains uncertain until regulatory clarity improves.