Canary Capital has filed to launch the Canary Trump Coin ETF, a product intended to buy and hold the Official Trump memecoin directly, following President Donald Trump's introduction of the token earlier this year. However, analysts are questioning how the ETF will navigate regulatory challenges, as traditional ETF approval processes typically take a year and often require a futures product to have existed for at least six months. Analyst Eric Balchunas expressed doubt on social media regarding the ETF's approval, highlighting a potential regulatory pathway through the Investment Company Act of 1940, which may be different from the usual processes for crypto ETFs. Critics of the token have raised concerns over its potential use for anonymous influence buying and conflicts of interest given Trump's position. Canary’s filing indicates the shares might entail higher risks for investors, particularly for those not experienced with such speculative securities. Other firms, such as REX, have also pursued similar ETF structures under the 40 Act. The regulatory landscape remains precarious for such innovative cryptocurrency-based investment products.

Source 🔗