Canary Files ETF for Trump Memecoin Amid Regulatory Uncertainty

Canary Capital Group Inc. has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tracking the TRUMP memecoin, a digital asset launched by former U.S. President Donald Trump in January 2025[1]. The proposed fund, named the Canary Trump Coin ETF, aims to provide traditional investors with access to a highly volatile asset typically associated with social media-driven speculation[2]. The ETF would operate as a trust that directly holds TRUMP coins and is intended to mirror the memecoin's performance, net of expenses[3].

This filing marks a significant departure from previous attempts to bring the TRUMP memecoin into traditional finance. Unlike earlier proposals, which were structured under the Investment Company Act of 1940 and involved indirect exposure through Cayman-based subsidiaries, Canary’s application is filed under the Securities Act of 1933. This would mean the fund is directly and fully exposed to the TRUMP memecoin, likely requiring U.S.-based custodial arrangements[3]. The move is seen as a test of regulatory boundaries, given that the SEC has previously categorized meme coins as outside its jurisdiction[4].

At the time of filing, the TRUMP token was trading around $8.37, with a market capitalization of $1.67 billion, placing it among the top six meme coins globally[2]. Despite a 3.3% decline over the past week, the token remains over 88% below its January 2025 peak of $75[5]. Analysts have noted that the token's value is largely driven by online sentiment and cultural relevance rather than technical or economic fundamentals[4].

Bloomberg ETF analyst Eric Balchunas expressed skepticism about the likelihood of immediate approval, citing regulatory precedent that typically requires a related futures product to trade for at least six months before a spot ETF can be approved[3]. No such TRUMP futures products have yet traded for that duration, according to Balchunas. However, he acknowledged the possibility that the token could be incorporated into a more diversified ETF under the 1940 Act framework[3].

The TRUMP ETF filing is part of a broader trend among asset managers seeking to integrate politically aligned digital assets into traditional financial markets. Rex Shares and Osprey Funds have also submitted TRUMP-focused ETF applications, indicating growing competition in the space[6]. Canary is also pursuing approval for the “American-Made Crypto ETF” (MRCA), which would track a basket of U.S.-based cryptocurrencies such as XRP, Solana, Cardano, Chainlink, and Stellar. The fund plans to include staking rewards and uses a South Dakota-based trust company for custody[2].

Despite recent guidance from the SEC addressing issues such as staking and custody for crypto ETFs, the approval process remains slow and uncertain[6]. Analysts suggest that the TRUMP ETF could enhance the token’s liquidity and attract both institutional and retail investors[5]. However, the fund’s performance will be contingent on broader macroeconomic conditions, political developments, and the agency’s final ruling.

The S-1 filing was publicly accessible via the SEC’s EDGAR database on August 24, 2025[6]. Details such as management fees, listing venue, and distribution methods remain undisclosed. The ETF represents a novel attempt to bring a meme coin into the structured financial system, highlighting the evolving nature of crypto investing and the influence of political branding in digital asset markets[1].

Source:

[1] https://news.bitcoin.com/canary-capital-seeks-sec-approval-for-trump-meme-coin-exchange-traded-fund/

[2] https://thecryptobasic.com/2025/08/26/canary-capital-seeks-sec-approval-for-etf-on-president-trumps-memecoin/

[3] https://coincentral.com/canary-capital-seeks-green-light-for-trump-coin-etf/

[4] https://abcnews.go.com/Business/wireStory/trump-family-crypto-empire-expands-crypto-partnership-124990307

[5] https://coinpedia.org/news/official-trump-price-rebounds-as-canary-capital-files-for-spot-trump-etf/

[6] https://www.sec.gov/Archives/edgar/data/2083122/000199937125012002/trump-s1_082625.htm