Canary’s Trump Coin ETF Trust Registered in Delaware: TRUMP Sees Rise of Over 10%

Canary Capital has officially registered the Canary Trump Coin ETF in Delaware, paving the way for the potential launch of the first U.S. exchange-traded fund (ETF) focused on the Official Trump memecoin.

Key Takeaways

Canary Capital has registered the Canary Trump Coin ETF in Delaware.
This marks an essential initial move towards creating a Trump Coin ETF that tracks the memecoin.
The registration sets up a statutory trust, necessary for launching crypto ETFs.
TRUMP token's market capitalization is approximately $1.9 billion.
Following the registration news, TRUMP's value increased by over 10%.

Canary’s Trump Coin ETF Trust registered in Delaware, TRUMP up over 10%

Overview of the ETF Registration

On Wednesday, the registration for the Canary Trump Coin ETF became accessible on the Delaware State Department’s website. This filing establishes a statutory trust, which is a common legal framework utilized for initiating crypto ETFs under the Securities Act of 1933. This step indicates that Canary is gearing up for a more comprehensive filing with the U.S. Securities and Exchange Commission (SEC).

Although registering in Delaware does not guarantee that the ETF will go live, it represents a significant first stride toward bringing this investment opportunity to market.

Future Steps for the ETF

Bloomberg ETF analyst Eric Balchunas noted that Canary appears to be pioneering the first Trump Coin ETF under the ’33 Act, contrasting with the ’40 Act applications that Tuttle Capital has submitted for its Trump and Melania coin ETFs. The ’33 Act framework is typically used for crypto ETFs centered on a singular asset, meaning the fund directly holds the token rather than a diversified selection of cryptocurrencies.

Earlier this year, other companies like Osprey Funds and REX Shares also announced their intentions to create a TRUMP ETF, with their proposals filed in January.

By registering a statutory trust in Delaware, Canary has laid the groundwork for the legal entity that will manage the ETF’s assets and offer shares to investors. The next critical phase involves filing an S-1 registration statement with the SEC under the ’33 Act.

However, even if Canary quickly files the S-1, obtaining approval may take several months. Recent cryptocurrency ETFs, including those for Bitcoin and Ethereum, underwent lengthy review processes and extensive discussions regarding market oversight, pricing benchmarks, and redemption strategies.

Market Impact and Current Status

Considering the relatively brief trading history and the unstable nature of memecoins, the approval process for a Trump Coin ETF may encounter some challenges. Additionally, Canary has filed for an ETF focused on another meme coin, PENGU.

As reported, the Official Trump (TRUMP) has a market capitalization of around $1.9 billion, making it the sixth-largest memecoin by market cap and showcasing significant speculative trading activity. Following news of the Delaware registration, TRUMP rose over 10%, reaching a multi-week high of $10.13. However, it remains more than 86% below its all-time high of $73.43, recorded in January shortly after its launch.