REX Shares, alongside its crypto-focused sister company Osprey Funds, has filed applications for seven cryptocurrency exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC). The ETF filings cover cryptocurrencies like XRP, Solana (SOL), Bitcoin (BTC), and Ethereum (ETH), as well as memecoins like Dogecoin (DOGE), Bonk (BONK), and the recently launched TRUMP token.
REX shares files for seven ETFs including Solana, XRP and some memecoins. Source: XWhich One Have Major Chances of Approval?
According to Eric Balchunas, Senior ETF Analyst at Bloomberg, the TRUMP ETF and other memecoin ETFs like Dogecoin and Bonk have a high chance of approval first. These filings were submitted under the 1940 Act, which has a faster approval timeline of 75 days. If no objections are raised, these ETFs could hit the market by April 2025.
Analysts expects DOGE and TRUMP ETF to hit the market by april. Source: XHowever, Balchunas said that the SEC might face pressure when evaluating an ETF tied to President Donald Trump’s own memecoin. “Does the SEC reject an ETF based on the President’s (their boss) own memecoin?” Balchunas remarked.
The TRUMP token is a new memecoin tied to Donald Trump, the 47th U.S. president. It launched just before his inauguration and quickly gained attention. The token started with a market value of $14.5 billion but later dropped by 50%. The TRUMP ETF would invest most of its assets in this token.
TRUMP tokens are highly volatile. According to its website, Trump-affiliated entities own 80% of the TRUMP tokens. This raises questions about whether the SEC will approve an ETF based on such a risky asset.
What About XRP and Solana ETFs?
XRP and Solana ETFs face tougher hurdles. Both cryptocurrencies have been under SEC scrutiny, with XRP’s parent company, Ripple, involved in a prolonged legal battle over whether XRP qualifies as a security. Solana faces similar concerns, which may complicate their ETF approvals process. Another Bloomberg analyst, James Seyffart, indicated that the 19b-4 process will require 240 days to approve these ETFs, making them less likely to gain approval before memecoin ETFs.
However, Analysts believe new SEC leadership under Donald Trump could make approvals easier. Acting SEC Chair Mark Uyeda and expected nominee Paul Atkins are seen as more crypto-friendly, increasing the likelihood of ETF approvals for these products.
Balchunas noted a sharp rise in ETF filings since Gensler’s exit, stating:
33 crypto ETFs are now currently filed with the SEC, the list doubled since Gensler left the building on Friday.
He added that the number of filings could hit 50 within weeks.
If approved, these ETFs could attract significant capital inflows. Analysts predict Solana ETFs might draw $3 billion to $6 billion, while XRP ETFs could attract $4 billion to $8 billion in their first year. However, the demand for these ETFs may fall short of Bitcoin and Ethereum ETFs, which investors consider safer due to their classification as commodities.
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