Canary Capital has filed for approval to launch the first spot ETF directly linked to President Trump's meme coin, TRUMP, which would allow for complete exposure to this volatile asset. Unlike previous ETF proposals which utilized a diversified approach, this fund seeks to hold only the TRUMP token itself under stringent custody regulations. Analysts express skepticism about the SEC's likelihood to approve this application soon, as such ETFs usually require the underlying asset to be traded as a futures product for at least six months—a condition unmet by TRUMP. Canary's application represents a significant deviation by registering under the Securities Act of 1933 rather than the Investment Company Act of 1940, indicating a direct investment strategy. Approval would be a historic move, potentially merging cryptocurrency with traditional finance on a broad scale. However, the SEC has previously indicated a cautious stance towards meme coins, complicating the approval process further.

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