Canary Capital has filed with the U.S. Securities and Exchange Commission (SEC) for the first exchange-traded fund (ETF) tracking the TRUMP memecoin, a token associated with President Donald Trump. The proposed “Canary TRUMP Coin ETF” aims to offer investors exposure to the token through traditional brokerage accounts, eliminating the need for direct digital asset custody. This filing marks a significant development in the evolving relationship between political branding and speculative crypto assets [1].
The TRUMP token, launched in January 2025, is a Solana-based memecoin that has seen substantial volatility, with its market value dropping 69% from an all-time high of $46.50 in January. At the time of the filing, the token was trading at $8.40. Critics argue that the token raises ethical concerns, as it could allow anonymous individuals to exert influence on the president, who also controls crypto-related policy. The White House has denied any conflict of interest, noting that the president’s assets are held in a family-trust structure [1].
Canary Capital’s filing highlights the speculative nature of the ETF, emphasizing that the TRUMP token has “no identified blockchain-based utility beyond its branding and association with President Donald J. Trump.” The token’s value is said to be driven primarily by political affiliation, cultural relevance, and online community sentiment. The firm has also outlined risks such as extreme price volatility and the potential for investors to lose their entire principal [2].
A significant regulatory hurdle lies ahead. Bloomberg ETF analyst Eric Balchunas has expressed doubts about the feasibility of the ETF’s approval, citing the SEC’s requirement that crypto assets be actively traded for at least six months before an ETF can be filed. This condition, which the TRUMP token has not yet met, raises questions about how politically-linked tokens might fit within existing regulatory frameworks. Canary, however, is exploring the possibility of utilizing the “40 Act” regulatory route, a strategy also used by REX Shares for its Solana staking ETF [1].
The filing has already generated market reaction. Following the announcement, the TRUMP token saw a modest 2% price increase, reaching $8.35, while derivatives traders reported a 3% rise in TRUMP futures open interest. This suggests growing institutional and speculative interest in the token and the broader implications of a potential ETF approval. Analysts are closely watching how the SEC evaluates this politically-charged case, as it could set a precedent for how other politically-themed or community-driven digital assets are treated under U.S. financial regulations [4].
Canary Capital is not alone in its efforts. REX Financial has also submitted a similar ETF application under the 40 Act, which would track TRUMP through an offshore entity holding the token. This approach, described by ETF Store president Nate Geraci as a “regulatory end-around,” reflects the competitive and evolving nature of the crypto ETF landscape. The regulatory clarity provided by the recent approval of Bitcoin, Ethereum, and Solana ETFs has emboldened firms to explore additional crypto-backed investment vehicles [1].
Source:
[1] Canary’s TRUMP ETF Bid Might Get Rejected: Analyst (https://cointelegraph.com/news/canary-capital-trump-coin-etf-us-sec)
[2] Canary Proposes First Political Meme Coin ETF for TRUMP (https://www.coindesk.com/business/2025/08/26/canary-proposes-first-political-meme-coin-etf-for-trump-token-in-bold-sec-filing)
[3] Canary Capital seeks to launch Trump meme coin ETF (https://www.reuters.com/technology/canary-capital-seeks-launch-trump-meme-coin-etf-betting-political-hype-2025-08-26/)
[4] The Controversial Surge of the Trump Coin ETF (https://www.onesafe.io/blog/trump-coin-etf-controversy)
[5] Canary Proposes First Political Meme Coin ETF for TRUMP (https://finance.yahoo.com/news/canary-proposes-first-political-meme-151924429.html)
