Canary Capital Launches Trump Coin ETF, Adding to Altcoin Portfolio
Canary Capital has officially registered a Trump Coin ETF in Delaware, signaling its intention to launch a spot exchange-traded fund (ETF) tracking the popular memecoin. The entity, known as “Canary Trump Coin ETF,” was incorporated on Aug. 13, according to state records.
This registration typically serves as a precursor to filing an S-1 application with the U.S. Securities and Exchange Commission (SEC), along with a corresponding 19b-4 form by a listing exchange. If approved, this ETF would become the third spot ETF tied to a meme coin, following similar applications for Dogecoin products from other major firms. Additionally, Canary Capital has also filed for a PENGU ETF, further solidifying its position as one of the few U.S. asset managers pursuing multiple altcoin-based ETFs.
This move by Canary Capital is quite unconventional in the current market landscape, where most crypto ETF efforts have focused on established digital assets like Bitcoin (BTC) and Ethereum (ETH), occasionally expanding into large-cap layer-1 tokens such as Solana (SOL).
By specifically targeting smaller, high-volatility meme coins, Canary Capital is carving out a niche for itself in a segment often seen as speculative and outside the mainstream ETF arena. The firm’s CEO has previously expressed that these altcoin ETFs represent a strategic bet on undervalued digital assets.
The proposed Trump Coin ETF would provide institutional investors with direct exposure to the Solana-based TRUMP token, potentially injecting additional liquidity into the market and establishing a regulated investment avenue for what is currently a predominantly retail-driven asset.
The SEC has previously classified meme coins as commodities, which could streamline the approval process for these types of ETFs compared to tokens categorized as securities.
In conclusion, Canary Capital’s foray into meme coin ETFs demonstrates a willingness to explore alternative investment opportunities in the ever-evolving crypto landscape. With a focus on niche assets like Trump Coin, the firm is positioning itself for potential growth and diversification within the digital asset market.