XRP News Today: TRUMP Memecoin Drops 22% in 30 Days Despite ETF Speculation

The official memecoin of President Donald Trump, TRUMP, is facing a continued decline in value despite recent speculations surrounding the potential launch of an exchange-traded fund (ETF). Investment firm Tuttle Capital has filed an amendment seeking to change the effective date for the ETF to July 16. This filing includes a range of 2x leveraged Long crypto ETFs for various tokens, including XRP, Solana, Litecoin, BNB, Cardano, and Polkadot, as well as memecoins such as BONK, TRUMP, and MELANIA.

According to Eric Balchunas, a senior ETF analyst, the effective date does not necessarily indicate the launch date of the ETF, but it is typically when ETFs are launched. The amendment filing by Tuttle Capital suggests a growing confidence among issuers to push for their products to launch, following the successful market entry of the Rex-Osprey SOL with staking ETF product SSK.

It is important to note that the Tuttle ETFs application and the already approved Rex-Osprey SOL ETF were both filed under the Investment Company Act of 1940. This means they do not directly hold the cryptocurrency like spot crypto ETFs and do not require SEC approval to launch. For instance, the Rex-Osprey SOL ETF gains exposure to Solana by having 40% of its holdings in securities through other Sol exchange-traded products.

While the Rex-Osprey SOL ETF and the ones that Tuttle wants to launch do not require SEC approval, the fact that the regulator did not object to the products represents a positive sign. Several spot ETF applications await the SEC's verdict, and the regulator has already taken a significant step by approving the conversion of the Grayscale Digital Large Cap fund, GDLC, into an ETF. The fund holds major cap tokens including Bitcoin, Ethereum, Solana, XRP, and Cardano, indicating that multi-asset spot crypto ETFs could soon start seeing approvals.

Additionally, there are reports that the SEC is planning to create listing criteria for crypto-based ETFs, which would simplify the process. This approach could save both issuers and the SEC a lot of paperwork and back-and-forth on comments. Although there is no clarity on the criteria, experts believe that such standards alone are enough to provide clarity. Balchunas added that he expects the standards to be loose enough for most of the top 50 tokens by market cap to meet the criteria.

Despite the potential for an ETF launch, the TRUMP memecoin has continued to decline in value. The token has fallen further in the last 24 hours, continuing a trend that has seen it drop more than 6% in the past week and over 22% in the last 30 days. There are no signs of any positive reversal for the memecoin, especially as the memecoin sector continues to struggle with attention shifting to other sectors. TRUMP memecoin is already down 88% from its peak price of over $75, as it trades around $8.64.