Eliza Wong
Executive Summary
- The U.S. SEC has approved the first-ever meme-coin ETF, the Rex-Osprey Dogecoin ETF, signaling a major regulatory shift under new chairman Paul Atkins (保罗·阿特金斯).
- Multiple new cryptocurrency ETFs are expected to follow, including an XRP ETF and a $TRUMP ETF, with nearly 100 applications pending.
- This policy reversal contrasts sharply with the previous administration’s resistance and may attract significant capital into alternative digital assets.
- Critics warn about the risks of investing in assets like Dogecoin, which lack fundamental value, while proponents highlight growing market demand.
- The Trump family is actively promoting cryptocurrency as a means to “save the dollar” and attract global investment.
A New Era for Cryptocurrency ETFs Begins
The U.S. Securities and Exchange Commission (SEC) has ushered in a transformative period for digital asset investments with the landmark approval of the first meme-based exchange-traded fund. The Rex-Osprey Dogecoin ETF is set to begin trading this Thursday, representing not just a new financial product but a profound shift in regulatory philosophy.
This decision marks a stark departure from the cautious, often adversarial stance adopted under former SEC Chair Gary Gensler. Under the new leadership of Paul Atkins (保罗·阿特金斯), appointed by former President Donald Trump, the Commission has taken a notably more open approach toward cryptocurrency ETFs. The approval came without opposition from regulators, allowing the fund to launch after the standard 75-day review period.
Regulatory Reversal and Market Implications
The approval signals what analysts are calling a watershed moment for cryptocurrency ETFs. Under Gensler, the SEC only reluctantly approved the first spot Bitcoin ETFs in January 2024 after losing key legal battles. The current administration’s embrace of digital assets reflects growing acceptance of cryptocurrencies as legitimate investment vehicles.
This shift comes alongside the SEC’s approval of new streamlined listing standards for cryptocurrency ETFs, expected to trigger a wave of digital asset products next month. With Bitcoin and Ethereum ETFs already managing over $175 billion in assets, the entry of meme coins into the ETF space represents both an expansion and democratization of crypto investing.
Multiple Cryptocurrency ETFs Enter the Pipeline
Beyond the Dogecoin ETF, Rex Financial and Osprey Funds are simultaneously launching the first U.S. XRP ETF and have filed applications for a $TRUMP ETF tied to the former president’s personal meme coin. The Dogecoin ETF carries a 1.5% management fee, while the XRP fund charges 0.75%. Both will trade on the Cboe exchange.
This is just the beginning. Between 90 and 100 cryptocurrency ETF applications currently await SEC approval, and analysts predict most will gain clearance under the new regulatory regime. The floodgates appear open for a new category of digital asset products that previously faced significant regulatory hurdles.
Fee Structures and Market Positioning
The varying fee structures reflect both the novelty and perceived risk profiles of these assets. While Bitcoin and Ethereum ETFs typically charge between 0.2% and 0.8%, the higher fees for meme coin ETFs compensate for their speculative nature and limited track records. Still, demand appears strong enough to support these products despite the cost premium.
Analysts Divided on Meme Coin Valuation Concerns
The approval has sparked heated debate among financial professionals. Some analysts warn that legitimizing assets like Dogecoin through ETF packaging may create confusion among investors who mistake popularity for intrinsic value.
Bryan Armour, Morningstar’s Director of Passive Strategies Research for North America, expressed concern: “I think this is dangerous—it normalizes collectibles. Dogecoin looks like a fad, like Beanie Babies or baseball cards.” Unlike Bitcoin and Ethereum, which offer decentralized finance applications or value storage capabilities, meme coins typically lack fundamental use cases.
Proponents Point to Market Reality
Supporters counter that market demand cannot be ignored. Dogecoin currently ranks as the sixth-largest non-stablecoin cryptocurrency by market capitalization, demonstrating significant investor interest. Greg King, CEO of Rex Financial, defended the products: “The digital asset revolution has begun. Being able to provide exposure to some of the most popular digital assets under the protection of the U.S. Investment Company Act of 1940 ETF structure is an achievement Rex-Osprey is proud of.”
Trump Family Champions Cryptocurrency as Dollar Savior
The political dimensions of this regulatory shift cannot be overlooked. Eric Trump, son of former President Donald Trump, has emerged as a vocal cryptocurrency advocate, claiming digital assets could “save the dollar” by attracting global investment to the United States.
Speaking after ringing the Nasdaq opening bell for cryptocurrency company American Bitcoin—where he holds over $500 million in shares—Trump argued that digital asset growth would redirect “trillions from unstable currencies around the world to the United States.” This perspective aligns with broader concerns about dollar dominance amid growing U.S. debt and trade tensions.
Family Investments and Personal Meme Coins
The Trump family’s cryptocurrency involvement extends beyond rhetoric. Their investments include the Truth Social Bitcoin ETF, two meme coins (MELANIA and TRUMP), and bitcoin treasury operations through Trump Media & Technology Group. Eric Trump defended these ventures as “entertainment,” comparing them to betting on sports figures or celebrities: “People want to bet on a coin, or a player. They want to bet on a celebrity or well-known brand, or buy a little piece of someone through digital currency.”
Global Context: Dollar Vulnerabilities and Crypto Appeal
This cryptocurrency push comes amid concerns about dollar stability. The U.S. currency has declined significantly this year amid Trump’s trade wars and repeated attacks on the Federal Reserve, shaking investor confidence in the dollar’s reserve status. Growing debt burdens, exacerbated by Trump-era tax policies, have further pressured the currency.
In this context, cryptocurrency advocates position digital assets as both investment opportunities and potential alternatives to traditional financial systems. The approval of cryptocurrency ETFs represents not just a regulatory change but part of a broader conversation about monetary innovation and dollar competition.
Investment Implications and Forward Outlook
The approval of meme coin ETFs creates both opportunities and risks for investors. While these products offer easier access to cryptocurrency exposure without direct ownership challenges, they also carry substantial volatility and valuation questions.
Financial professionals should approach these products with clear-eyed understanding of their speculative nature. Due diligence remains essential, particularly for assets lacking fundamental value drivers beyond community enthusiasm. Nevertheless, the regulatory green light suggests cryptocurrency ETFs will become increasingly mainstream components of investment portfolios.
The watershed moment for cryptocurrency ETFs represents more than just new products—it signals evolving regulatory attitudes and growing institutional acceptance of digital assets. As the landscape continues shifting, investors must balance innovation awareness with risk management. The coming months will likely see additional cryptocurrency ETF approvals, potentially reshaping how both retail and institutional investors access digital assets.
Monitor SEC announcements and new product filings closely, as the cryptocurrency ETF space appears poised for rapid expansion. Consider consulting with financial advisors specializing in digital assets before making investment decisions in this emerging and volatile category.
