TLDR
- Canary Capital Group has filed with the SEC to create the first political meme coin ETF based on TRUMP token
- The TRUMP coin launched in January 2025 and briefly reached $27 billion market value, now trades at $1.67 billion
- The ETF would allow traditional investors to gain exposure to TRUMP token through brokerage accounts without self-custody
- The filing warns of extreme volatility and describes TRUMP as having no utility beyond political branding
- SEC approval could set a precedent for future ETFs tied to politically-linked digital assets
Canary Capital Group filed an application with the Securities and Exchange Commission on Tuesday to launch the first spot exchange-traded fund based on a political meme coin. The proposed “Canary TRUMP Coin ETF” would track the TRUMP token, a Solana-based cryptocurrency linked to President Donald Trump.
The Tennessee-based investment firm submitted an S-1 filing that marks an unprecedented attempt to bring politically-themed meme coins to traditional Wall Street investors. A second 19b-4 filing from the listing exchange is still required to make the application official.
The TRUMP coin launched three days before Trump’s inauguration in January 2025 and quickly gained traction on social media platforms. The token briefly reached a reported market value exceeding $27 billion shortly after its debut but has since dropped to around $1.67 billion in current trading.
Market Performance and Volatility
The filing acknowledges the extreme volatility that has characterized the TRUMP token since its launch. Canary Capital describes the memecoin as having no identified blockchain utility beyond its branding and association with President Trump.
The token’s market value is primarily driven by political affiliation, cultural relevance, and online community sentiment according to the filing. This makes it both a political statement and a digital collector’s item for investors.
Major cryptocurrency exchanges moved quickly to list the TRUMP token, with Reuters analysis showing they added it much faster than other meme tokens. The rapid listing process helped fuel the initial surge in trading volume and price.
Regulatory Environment and Concerns
The ETF filing comes during a shifting regulatory landscape under the Trump administration. SEC Chair Paul Atkins has taken a softer stance toward cryptocurrency compared to his predecessor.
If approved, the fund would offer investors exposure to TRUMP tokens through traditional brokerage accounts. This would eliminate the need for investors to manage their own cryptocurrency wallets or engage in self-custody of digital assets.
The filing warns potential investors about the possibility of losing their entire principal investment. It cites extreme volatility, potential regulatory scrutiny, and the speculative nature of meme coins as key risk factors.
Political and Ethical Questions
Ethics experts have raised concerns about potential conflicts of interest regarding Trump’s connection to the token. They argue that the president’s association with a tradeable digital asset presents serious ethical questions.
The White House has denied any wrongdoing in response to these concerns. Officials stated that Trump’s assets are held in a trust managed by his family, claiming there is no conflict of interest.
ETF Landscape Development
The TRUMP token ETF application follows the success of other cryptocurrency ETFs in recent years. Bitcoin, Ethereum, and Solana spot ETFs have all gained regulatory approval and begun trading.
Other meme coin ETF proposals have also been submitted to the SEC. These include applications for Dogecoin, Chainlink, and Cardano-based investment vehicles.
Canary Capital filed another ETF application just one day earlier for tokens created or minted in the United States. This suggests the firm is pursuing multiple cryptocurrency investment products simultaneously.
The company has not disclosed expected fees for the TRUMP ETF or identified which exchange would list the fund if approved. These details typically emerge during the regulatory review process.
The SEC’s decision on the Canary TRUMP Coin ETF could establish important precedents for politically-linked digital assets. The agency’s ruling may influence how future ETF applications for similar tokens are evaluated and approved.
