Rex Shares Files for XRP, SOL, DOGE, BONK, and TRUMP ETFs

Highlights:

• REX Shares files applications for several crypto ETFs, including TRUMP, DOGE, XRP, and BONK under the new SEC leadership.
• The ETFs mix spot holdings and derivatives according to the Investment Company Act of 1940 requirements.
• TRUMP memecoin ETF tracks market price performance using direct market investments or swap contracts under the management of a Cayman subsidiary.

As a major player in asset management, REX Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch several cryptocurrency ETFs. RXI Shares and Osprey Funds, in collaboration, submitted a joint proposal featuring ETFs for XRP, SOL, DOGE, and BONK. The application features TRUMP memecoin launched by U.S. President Donald Trump recently. 

This development marks a key milestone in the cryptocurrency market following Gary Gensler’s departure from his role as SEC Chair. Acting SEC Chairman Mark Uyeda expresses stronger support for crypto-related initiatives. Donald Trump’s recent inauguration leads to these filings which show strong support for crypto regulations from his administration.

REX SHARES FILES FOR MULTIPLE ETFS, INCLUDING TRUMP, BONK, AND DOGE MEMECOINS

– Award-winning Exchange-traded Products provider @RexShares has filed for multiple ETFs with the Securities and Exchange Commission (SEC).

– First revealed by Bloomberg's ETF specialist Eric… https://t.co/Y8utCVQnFK pic.twitter.com/gpyn6mizVx

— BSCN (@BSCNews) January 21, 2025

Leading Tokens and Meme Coins Steal the Spotlight

REX Shares stands out as the first company to develop ETFs for mainstream cryptocurrencies Bitcoin and Ethereum while extending to meme coins TRUMP, DOGE and BONK. According to Bloomberg analyst James Seyffart, the filings indicate that the funds will allocate at least 80% of their total assets into such cryptocurrencies.

The TRUMP ETF specifically tracks how the memecoin’s price movements. The TRUMP Subsidiary of REX manages investments through direct token purchases and risk contracts including swaps and derivatives. The fillings cite TRUMP’s rapid market capitalization growth helps justify the development of this ETF.

Seyffart noted the establishment of a Cayman subsidiary using methods from commodity ETFs to minimize tax complications. The investment structure follows the same setup as crypto futures ETFs filed under the Investment Company Act of 1940.

Notably, these products are filed under the 1940 Act (like crypto futures ETFs). They'll hold a combo of derivatives, the assets, and a cayman subsidiary which will hold the assets. This looks similar to a playbook issuers use in the commodity ETF world to avoid K-1's but idk. pic.twitter.com/rX5sbMeyjw

— James Seyffart (@JSeyff) January 21, 2025

New Administration Boosts Crypto Sentiment

These filings happen right after Donald Trump becomes president and his administration’s efforts to support cryptocurrency. Trump’s pick of crypto-backing SEC leader Paul Atkins means crypto could face friendlier rules moving forward. The latest administration has committed to helping the crypto market expand by easing restrictions.

The SEC let spot Bitcoin ETFs commence trading in January 2024, then gave the same go-ahead for Ethereum ETFs in May. Many crypto products were turned down under Gensler’s tenure while Bitcoin and Ethereum were approved. People feel more optimistic, especially for altcoins and memecoins under the new SEC leadership.

According to Eric Balchunas, a senior ETF analyst from Bloomberg, the filings were “surreal” He pointed out that making room for TRUMP and other meme coins in ETF applications represents a unique step. As the SEC changes its leadership and policies, companies are pushing the limits of what new rules will allow them to include in their products.

Surreal pic.twitter.com/9ThQ7dNDGa

— Eric Balchunas (@EricBalchunas) January 21, 2025

REX Shares’ recent filings mark their bold new position as crypto ETFs continue to develop and evolve. The ETF filings show the increasing institutional demand for diverse crypto assets, including mainstream tokens and meme coins. 

Trump’s administration and Mark Uyeda’s approach at the SEC create new opportunities for these projects. New rules and approaches for crypto-related financial products are expected to transform the ETF market.