Canary Capital Registers Trump Coin ETF in Delaware, Setting the Stage for Potential U.S. Exchange-Traded Fund
Canary Capital has taken a significant step towards launching the first U.S. exchange-traded fund tracking the Official Trump memecoin by registering the Canary Trump Coin ETF trust in Delaware. The registration was made public on the Delaware State Department’s website, signaling the firm’s intention to move forward with the creation of the ETF.
The filing establishes a statutory trust, a legal structure commonly used for crypto ETFs under the Securities Act of 1933. While the Delaware registration does not guarantee the launch of the ETF, it is a crucial first step in the process.
Bloomberg ETF analyst Eric Balchunas noted that Canary appears to be pursuing a Trump Coin ETF under the ’33 Act, a different approach from Tuttle Capital’s filings for their Trump and Melania coin ETFs under the ’40 Act. The ’33 Act setup is typically used for crypto ETFs focused on a single asset, where the fund holds the token itself rather than a mix of different coins.
Earlier this year, Osprey Funds and REX Shares also revealed plans for a TRUMP ETF, filing their proposals in January. The competition in the market for meme coin ETFs is heating up, with multiple firms vying to launch their own versions.
By registering a statutory trust in Delaware, Canary has established the legal entity that will hold the ETF’s assets and issue shares to investors. The next major step would be filing an S-1 registration statement with the SEC under the ’33 Act. However, the approval process could take months, as seen with recent spot crypto ETFs for Bitcoin and Ethereum.
Given the relatively short trading history and volatile nature of meme coins like TRUMP, approval for a Trump Coin ETF may face challenges. Canary has also filed for an ETF tracking another meme coin, PENGU, indicating their interest in expanding their offerings in the meme coin market.
The Official Trump token, with a market capitalization of approximately $1.9 billion, is the sixth-largest memecoin by market cap. Following news of the Delaware registration, TRUMP experienced a price surge of over 10% to reach $10.13, although it remains significantly below its all-time high of $73.43 reached in January.
Overall, the registration of the Canary Trump Coin ETF in Delaware marks a significant development in the potential launch of a U.S.-based ETF tracking the Official Trump memecoin. Investors and market participants will be closely watching for further updates on this groundbreaking initiative.