Crypto Madness: REXShares And Osprey File For TRUMP, BONK, And DOGE ETFs

Crypto Madness: REXShares And Osprey File For TRUMP, BONK, And DOGE ETFs

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Amid the excitement generated by the recent launches of President Donald Trump and First Lady Melania’s memocoins, REX Shares and Osprey captured attention by making deposits for ETFs Associated with several of the most popular cryptocurrencies: TRUMP, Bonk Inu (BONK), and Dogecoin (DOGE).

New ETFs Target Memecoins and Major Cryptocurrencies

the Depositrevealed by Bloomberg ETF expert James Seyphart, also includes ETFs for major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana Sol, and Ripple.

Notably, these products are offered under a 1940 law, similar to cryptocurrency futures ETFs, allowing them to hold a mix of derivatives and assets through a Cayman Island subsidiary.

Seyfart Highlight This structure is reminiscent of strategies used in commodity ETFs, designed to minimize tax complications, especially avoiding K-1 forms, which can complicate investors’ tax returns.

The newly proposed funds aim to provide exposure to their reference assets through investments in a regulated subsidiary in the Cayman Islands, called REX-Osprey™ TRUMP (Cayman) Portfolio SP.

This subsidiary will be wholly owned by the Fund and is expected to own no more than 25% of the Fund’s total assets. This approach not only allows for diversity Investment strategies But it also helps the fund meet income source requirements set forth in the Internal Revenue Code.

Orders for digital asset ETFs rise to 33: experts expect further growth

The fund’s structure is also classified as “non-diversified” under the Investment Company Act of 1940, allowing it greater flexibility in its investment decisions.

In addition, the Fund intends to allocate its remaining assets to various cash investments such as US Treasury bonds, Money market fundsAnd other high-quality cash equivalents, which aim to enhance liquidity and provide a guarantee for the Fund’s investments.

The momentum of these deposits reflects a broader trend in the cryptocurrency market, said Eric Balchunas, a colleague of Seyvart’s, He pointed out The number of cryptocurrency ETFs filed with the SEC has now reached 33.

The recent regulatory environment has seen filing requests double since the departure of Gary Gensler from the US Securities and Exchange Commission (SEC) on Friday, with expectations that number could rise to 50 in the coming weeks.

However, Balchunas warns that while the influx of new ETFs is exciting, the majority of venture capital will likely continue to flow into the spot market. Bitcoin ETFs.

Balchunas likens the cryptocurrency market to the commodities sector, where gold remains dominant while silver and lesser-known commodities such as palladium and aluminum occupy niche positions.

In this landscape, mainstream cryptocurrencies such as Bitcoin and Ethereum are expected to attract the bulk of investment, while memecoins may find themselves in a more marginal position, the expert further emphasized.

The two-hour chart shows Trump’s price consolidation just below the $40 mark. source: TrumpUSDT is TradingView.com

At the time of writing, the official currency of the president, Trump, is trading at $39,044, down 50% from its peak of $79 over the weekend.

Featured image of DALL-E, chart from TradingView.com

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