Several companies are jumping into the crypto ETF game, filing applications for funds tracking some pretty interesting assets.
ETFs for Memecoins and Major Cryptos
REX Shares and Osprey have submitted paperwork for exchange-traded funds (ETFs) covering a range of cryptocurrencies, including the memecoins TRUMP, BONK, and DOGE, along with the big players like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP. These ETFs are structured differently than some others, using a Cayman Islands subsidiary to hold assets. This setup is similar to what’s used in commodity ETFs, aiming to make tax season simpler for investors.
Smart Structure, Big Potential
The proposed funds will invest in the subsidiary, which will hold a maximum of 25% of the total assets. The rest of the money will be in safer bets like US Treasuries and money market funds, ensuring liquidity and protecting investments. This structure offers flexibility and helps the funds meet specific tax requirements.
The Crypto ETF Boom
This isn’t just a one-off; the number of crypto ETF filings with the SEC has exploded to 33! Experts believe this number could hit 50 soon, fueled by a recent change in leadership at the SEC. However, it’s predicted that Bitcoin and Ethereum will still be the main attractions for investors, with memecoins likely staying in a smaller niche.
TRUMP Coin Takes a Dip
At the time of writing, the TRUMP memecoin was trading at $39,044, a significant drop from its recent high.
