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    A crypto fund manager has applied for an innovative ETF linked to Trump’s meme coin.

    by VT Markets
    /
    Aug 27, 2025
    Crypto fund manager Canary Capital has filed to create a spot ETF that would be the first on Wall Street directly linked to the meme coin, TRUMP, named after President Trump. Previous filings this year suggested obtaining exposure through Cayman subsidiaries and U.S. Treasuries, but Canary’s new application follows the Securities Act of 1933 for full and direct exposure to the token. If approved, the Canary TRUMP Coin ETF would keep a reserve of TRUMP tokens under strict custody regulations, likely in the United States. This would be a regulatory milestone for a meme coin ETF. News of the potential TRUMP coin ETF has sparked significant speculation in the market. The token’s price jumped over 45% to $21.50 in the last 24 hours, fueled solely by this filing. This indicates that traders can expect high volatility in the coming weeks. Derivative markets are also reacting, with implied volatility on TRUMP options reaching over 200%. Traders should brace for sharp price movements, whether up or down, due to rumors or official updates from regulators. Strategies that benefit from volatility, like long straddles, may be worthwhile, although they come with a high cost. We should consider how the market reacted to spot Bitcoin ETF approvals in early 2024. In that case, prices rose due to anticipation but then dropped significantly right after the official approval. This history suggests that trading ahead of the decision may yield more profit than the event itself. The perpetual futures market is another important area to monitor, with open interest doubling to over $500 million. We expect funding rates to rise as long positions dominate, making it costly to stay bullish. This provides traders an opportunity to earn high funding fees by taking a contrarian short position, as long as they manage the risk of further price jumps.

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