- REX Shares and Osprey Funds to launch new crypto ETFs.
- Potential institutional impact on meme coins and major crypto.
- No SEC objections means ETFs launch as planned.
REX Shares and Osprey Funds plan to introduce crypto ETFs, including Bitcoin and meme coins, on Friday, pending SEC objection, after the regulatory 75-day review concludes.
This launch could boost legitimacy and liquidity in crypto markets, driven by institutional interest, especially for meme coins like Dogecoin, potentially affecting prices and trading volumes.
REX Shares and Osprey Funds are set to launch new cryptocurrency exchange-traded funds (ETFs) featuring Bitcoin, XRP, Dogecoin, Bonk, and Trump token. This initiative awaits the expiration of the SEC’s 75-day review process without objections.
Led by Greg King, REX Shares and Osprey Funds are at the forefront of crypto ETFs offerings. With recent SEC approvals, these ETFs aim to facilitate institutional access to memecoins under the Investment Company Act of 1940.
Immediate market reactions to ETF launches have been seen, with Dogecoin experiencing a 7-17% price surge in response. The market eagerly anticipates the ETF’s inaugural performance and its potential influence on crypto markets.
These new ETFs permit institutional access without needing personal custody of the assets, impacting market risk dynamics. Regulation under the ’40 Act offers a faster, cost-effective launch avenue compared to spot crypto ETFs.
Data from previous spot Bitcoin ETFs suggest potential significant market flows and price impacts. The inclusion of memecoins in regulated ETFs might lead to increased legitimacy and heightened speculation in the crypto sphere.
The introduction of memecoin ETFs may stimulate demand, influencing liquidity and volatility in the cryptocurrency market. Eric Balchunas highlighted the unprecedented nature of these offerings, noting potential for widespread institutional adoption and growth in crypto interest.
“Meme coin ETF era about to kick off it looks like with $DOJE slated for a Thursday launch, albeit under the 40 Act a la $SSK. There’s a big group of ’33 Act-ers waiting for SEC approval still. Pretty sure this is first-ever US ETF to hold something that has no utility on purpose” – Eric Balchunas, Senior ETF Analyst, Bloomberg
