Rex Shares, Osprey Funds File MOVE Token ETF Amid Mainnet Launch

Rex Shares and Osprey Funds have filed for an exchange-traded fund (ETF) focused on the MOVE token, the native cryptocurrency of the Movement Network, an Ethereum Layer 2 network. This filing coincides with the beta release of Movement’s mainnet, which aims to enhance the scalability and versatility of the blockchain ecosystem.

The MOVE token ETF represents a significant step forward in the crypto space, as it targets institutional investment in innovative blockchain technologies. Historically, ETFs have been limited to major cryptocurrencies like Bitcoin and Ethereum, restricting capital flows into emerging blockchain projects. The success of this ETF could open the door for increased institutional investment in lesser-known altcoins, facilitating next-generation blockchain innovation and introducing alternative digital assets to a broader investor audience.

However, the ETF must first receive approval from the U.S. Securities and Exchange Commission (SEC). The regulatory body has been cautious with crypto-based ETF applications, with a focus predominantly on Bitcoin and Ethereum. The SEC’s previous refusals of similar ETF applications highlight the ongoing challenges in this evolving regulatory landscape.

In preparation for the mainnet launch, the Movement team has been actively working to ensure a smooth deployment. Although the mainnet beta was initially launched on November 30, full deployment occurred on December 9. The foundation has assured enthusiasts that RPC support for both testnet and mainnet is now functional, with hopes that a complete mainnet launch might materialize by early March. Additionally, the foundation has allocated $250 million from its “Cornucopia program” to seed the Movement Public Mainnet Beta, aiming to foster growth within its ecosystem.

The announcement has sparked various reactions within the crypto space. Some commentators have expressed skepticism, particularly regarding the alleged politicking of Movement’s leadership. Co-founder Rushi Manche’s comments about the importance of political affiliations resonate amid efforts by numerous projects to align with pro-crypto political agendas. Critics have raised concerns regarding transparency and potential conflicts of interest, especially following a devnet launch associated with sizable investments made by linked entities shortly before an announcement.

Under the guidance of Acting Chair Mark T. Uyeda, the SEC appears to be adopting a more flexible stance towards cryptocurrency regulation. However, it remains to be seen whether this will translate into approvals for the plethora of ETFs awaiting review. With the landscape