Canary Challenges SEC with First Meme Coin ETF Blueprint

Digital asset manager Canary Capital has filed with the U.S. Securities and Exchange Commission (SEC) to launch the Canary Trump Coin ETF, an exchange-traded fund that would directly track the price of the $TRUMP meme coin, a crypto token linked to former U.S. President Donald Trump. This filing marks a significant regulatory milestone, as it is the first direct, spot-based ETF tied to a meme coin. If approved, the ETF would allow investors to gain exposure to the token through a regulated investment vehicle, encapsulating the volatile yet potentially lucrative nature of sentiment-driven crypto assets [1].

The $TRUMP meme coin, introduced in January 2025, just days before Trump’s re-inauguration, has drawn substantial attention on social media. A Reuters analysis in July found that major crypto exchanges added the token at a pace faster than other meme coins, highlighting its rapid adoption. However, the token has also faced scrutiny, with some ethics experts raising concerns over potential conflicts of interest for Trump, given his indirect economic stake via affiliated entities. The White House has maintained that Trump’s assets are held in a family-managed trust and that no conflict of interest exists [1].

Unlike previous ETF proposals for the $TRUMP coin, which involved indirect exposure through Cayman subsidiaries or U.S. Treasuries, Canary’s filing is based on the Securities Act of 1933, offering direct exposure to the token itself. If approved, the fund would be backed by a reserve of $TRUMP tokens held under U.S. custody regulations, marking a potential first for meme coin ETFs in the United States [4].

Canary Capital has not disclosed the fee structure or the specific exchange where the ETF would list. This filing follows closely on the heels of another ETF proposal, the Canary American-Made Crypto ETF (MRCA), which would track cryptocurrencies created, mined , or operated primarily within the U.S. The fund would exclude stablecoins, memecoins, and pegged tokens, and would be subject to quarterly rebalancing. Projects like Solana , XRP , and Dogecoin are expected to be included [2].

The broader regulatory landscape for crypto ETFs is shifting, with the SEC demonstrating a more accommodating stance under Chair Paul Atkins. Recent initiatives, such as Project Crypto and a staff statement addressing liquid staking arrangements, signal efforts to modernize the regulatory approach. However, the agency continues to exercise caution, as evidenced by recent delays in approving several other crypto ETF applications [2].

The $TRUMP meme coin currently has a market capitalization of over $1.6 billion, with a fully diluted value of $8.3 billion. Approximately 682 million tokens remain locked, custodied by entities affiliated with the Trump Organization. The token’s future remains tied to political sentiment and social media dynamics, with recent events including a controversial meet-and-greet for top holders and discussions about its potential use as a speculative vehicle [3].

Should the SEC approve the ETF, it would represent a new frontier for meme coin investments, allowing institutional and retail investors to participate in a space traditionally dominated by retail speculation. It also underscores Wall Street's willingness to capitalize on politically charged assets, despite the risks associated with their volatility and lack of fundamental backing [4].

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