XRP News Today: Canary Files First U.S. ETF Directly Holding TRUMP Meme Token

Canary Capital has filed for a spot exchange-traded fund (ETF) that would directly hold TRUMP tokens, a meme coin linked to former U.S. President Donald Trump. If approved by the U.S. Securities and Exchange Commission (SEC), the ETF would be the first of its kind to provide direct exposure to a political meme token on a U.S. exchange. The filing is structured under the Securities Act of 1933, which allows the ETF to hold the TRUMP token directly, rather than through a derivatives or indirect structure typically seen in 1940 Act filings [1].

Unlike previous attempts to list TRUMP-based ETFs, which relied on Cayman-based custodians and cash equivalents for indirect exposure, Canary’s proposal would require U.S. custody of the token itself. This approach signals a departure from traditional crypto ETF structures and could set a regulatory precedent if cleared [2]. However, the filing may face significant hurdles. According to Bloomberg ETF analyst Eric Balchunas, the SEC typically requires at least six months of active futures trading before approving a spot ETF. No such futures have traded for TRUMP to date [3].

The TRUMP token, launched in January 2025, has experienced a sharp decline in value, losing more than 70% of its initial price. This volatility raises questions about the token’s suitability for inclusion in a retail investment product and underscores the custodial and liquidity challenges associated with meme tokens [4]. The SEC is likely to scrutinize the ETF’s ability to maintain reserves of the token and ensure transparent redemption processes.

Regulatory clarity remains a critical factor in the ETF’s prospects. Republican SEC commissioner Hester Peirce has suggested that tokens like TRUMP may not qualify as securities, a stance supported by a recent SEC statement categorizing meme coins as non-securities. However, the agency has yet to issue definitive guidance on the treatment of meme tokens in ETF structures [5].

The broader regulatory environment for crypto ETFs appears to be evolving, with several applications—such as those for XRP and Avalanche—receiving updated filings in response to SEC feedback. These revisions reflect an ongoing dialogue between regulators and market participants, indicating a potential shift toward greater acceptance of crypto assets. However, the unique political and speculative nature of the TRUMP token introduces additional uncertainty [6].

Canary’s filing represents a bold move to integrate meme tokens into traditional finance, but its success will depend on the SEC’s evaluation of custody protocols, market surveillance mechanisms, and investor protection measures. Any approval would mark a significant milestone for both meme tokens and the broader crypto ETF landscape.

Source:

[1] Latest Crypto News (https://www.coindesk.com/latest-crypto-news)

[2] New ETF Filings Hint at Broader Crypto Product Boom Ahead (https://www.mexc.com/news/new-etf-filings-hint-at-broader-crypto-product-boom-ahead/74864)

[3] Regulators and Crypto Align as XRP ETF Hopes Gain (https://www.ainvest.com/news/xrp-news-today-regulators-crypto-align-xrp-etf-hopes-gain-momentum-2508/)

[4] 'Cluster' of amended XRP ETF filings roll in as Ripple seals ... (https://www.dlnews.com/articles/markets/cluster-amended-xrp-etf-filings-roll-in-ripple-sec-dismissal/)

[5] A New Era for U.S.-Centric Digital Asset Strategies - Crypto (https://www.ainvest.com/news/canary-capital-american-crypto-etf-era-centric-digital-asset-strategies-2508/)

[6] Japan's finance minister endorses crypto as portfolio ... (https://www.fastbull.com/news-detail/japans-finance-minister-endorses-crypto-as-portfolio-diversifier-news_6300_0_2025_3_8496_3/6300_CXT-USDC)