Memecoin Mania: Will Trump’s New Crypto Era Approve the Flood of ETFs?

The surge of memecoin exchange-traded fund (ETF) applications has hit Washington, signaling a shift in the regulatory landscape as the crypto world eyes new opportunities.

Just as Donald Trump began his term as president, financial regulators were flooded with filings for memecoin ETFs. Notably, Rex Shares and Osprey Funds submitted applications for Dogecoin, BONK, and a brand-new contender: TRUMP, the president’s very own memecoin.

These filings join a wave of applications for ETFs tied to other cryptocurrencies like Hedera, XRP, Litecoin, and Solana. While this move reflects optimism about the new administration’s crypto policies, many are skeptical about the odds of these ETFs being approved anytime soon.

A Bold Move or a Marketing Stunt?

Adam Morgan McCarthy, a crypto analyst at Kaiko, offered a dose of realism to the excitement. “A few weeks ago, the odds of approval were close to zero,” he told DL News. “Now, they’re slightly higher—but not by much.”

McCarthy suggests the filings might be more about marketing than genuine anticipation of approval. “The competition for Bitcoin ETFs is fierce,” he noted. “Issuers are looking for any edge that can differentiate their offerings.”

Indeed, the competition is steep. BlackRock’s Bitcoin ETF dominates the market with over $60 billion in net assets, while Fidelity holds the second spot at $23 billion. For smaller issuers, standing out means pursuing niche or attention-grabbing assets like memecoins.

A Crypto-Friendly Future?

Despite the challenges, optimism in the crypto market has soared since Trump’s victory on November 5. Bitcoin has surged 51% during this period, reflecting renewed investor confidence.

McCarthy explained that while Bitcoin ETFs took over a decade to gain approval, the new administration’s pro-crypto stance may expedite the process for memecoin and altcoin ETFs. “The rules of the game have changed,” he said, hinting that a friendlier regulatory climate could accelerate progress.

What Does BitGalactic Think?

BitGalactic, a prominent voice in crypto analysis, sees this flood of memecoin ETF filings as a high-risk, high-reward strategy. While the applications may not lead to immediate approvals, they signal a broader trend: issuers are aligning with cultural phenomena to capture attention and, potentially, future profits.

Moreover, BitGalactic highlights how this reflects the evolving narrative around crypto adoption. Memecoins, once dismissed as jokes, are now being repackaged into investment vehicles. Whether this move is visionary or speculative remains to be seen, but it undeniably underscores crypto’s unpredictable and ever-changing nature.

Key Takeaway

The memecoin ETF craze is more than just a sign of shifting regulatory tides—it’s a bold bet on the future of crypto under a new administration. Whether these funds will pass regulatory muster remains uncertain, but one thing is clear: the crypto world is playing a game where the stakes—and the rules—are constantly changing.