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Author: Zhao Ying, Wall Street News
This week, U.S. regulators approved the first exchange-traded fund based on meme coins, and the Rex-Osprey Dogecoin ETF began trading on Thursday.This marks a major turn toward cryptocurrency regulatory policy under the leadership of the new Trump-nominated chairman Paul Atkins.
In the new regulatory environment, the SEC has not raised any objections to the fund, allowing it to go public after a 75-day regulatory review period.This is in stark contrast to the period of former chairman Gary Gensler, who was tough on cryptocurrencies and approved the first batch of spot Bitcoin ETFs in January 2024 only after losing the case.
In addition to Dogecoin ETF, Rex Financial and Osprey Funds also launched the first XRP ETF in the United States and have applied to issue $TRUMP ETF to invest in Trump’s personal meme coins.Dogecoin ETF management fee rate is 1.5%, XRP fund is 0.75%, both funds will be listed on the Cboe Exchange.There are currently 90 to 100 cryptocurrency ETF applications awaiting approval, and analysts expect these products to be approved.
In response, some analysts warned that the move could cause confusion for investors, making them mistakenly believe that digital assets such as Dogecoin that lack basic value and use cases have economic value.However, supporters pointed out that Dogecoin is currently the sixth largest non-stable currency crypto asset calculated by market value, and market demand cannot be ignored.
SEC policy shifts to drive outbreak of cryptocurrency ETFs
The SEC has undergone a fundamental change in attitudes towards cryptocurrencies under Paul Atkins.On Wednesday, the SEC approved new simplified listing standards for cryptocurrency ETFs, expected to release a wave of new products tracking digital currencies next month.
Bitcoin and Ethereum ETFs have attracted more than $175 billion in funds, with mainstream asset management companies such as BlackRock and Fidelity leading the field.Todd Rosenbluth, head of research at consulting firm TMX VettaFi, said
This is the watershed moment when the SEC turns to support cryptocurrencies.
Bryan Armour, director of passive strategy research at Morningstar North America, warned that I think this is dangerous, which normalizes the collection.Dogecoin looks like a fashion, like a Doudou or a baseball card.
Unlike cryptocurrencies such as Bitcoin and Ethereum that have decentralized finance or store of value use cases, meme coins lack such basic support.They are often created as jokes and are more reflected in a form of online community engagement.
Rex Financial CEO Greg King defended this:
The digital asset revolution has begun.Rex-Osprey is proud to be able to provide exposure to some of the most popular digital assets under the protection of the ETF system of the U.S. Investment Companies Act 1940.
Trump family pushes cryptocurrency to “save the dollar”
Trump’s second son Eric Trump said growing demand for cryptocurrencies could “save the dollar” by attracting global investment into the United States, and the digital asset boom will lead trillions of funds from unstable currencies around the world to the United States.
The United States fell sharply this year, with Trump launching a trade war and attacking the Federal Reserve multiple times, shaking investors’ confidence in the US dollar as a global reserve currency.At the same time, the dollar has also been hit by concerns about the U.S. debt burden, which is expected to increase further due to the Trump tax bill.
Eric Trump made the remarks after ringing the Nasdaq opening bell for the market debut of cryptocurrency American Bitcoin, where he owns more than $500 million worth of shares.
It is worth mentioning that the Trump family’s cryptocurrency investment involves Truth Social Bitcoin ETF, two meme coins, and the Bitcoin inventory business affiliated to the Trump Media Technology Group.
Eric Trump defended the MELANIA and TRUMP meme coins launched earlier this year, saying it was just “entertainment”.”People want to bet on certain currency, or a player. They want to bet on celebrities or well-known brands, or buy a small portion of someone through digital currency,” he said.
