ETF expert raises concerns about how Canary’s TRUMP fund manages to operate.

Trump’s Mimecoin Secures ETF Approval Amid Skepticism

President Donald Trump’s Mimecoin recently achieved approval for an Exchange Sales Fund (ETF) in the US, thanks to a submission from Canary Capital aimed at buying and holding the token. Still, analysts are raising questions about how the product will navigate regulatory challenges.

Canary officially communicated with the Securities and Exchange Commission on Tuesday, stating that the fund, named the Canary Trump Coin ETF, will hold the token directly and will be impacted by official Trump policies.

Launched in January, just days before Trump returned to the White House, the token currently ranks 55th in market value. It’s seen a significant drop, down 69% from its peak of $46.50 on January 19, the day before Trump took office, according to TradingView.

The token has drawn scrutiny, with critics claiming it allows anonymous influence over the president and raises concerns about potential conflicts of interest due to Trump’s ability to shape crypto regulations.

Concerns Over ETF Approval

Canary must provide additional documentation before it can officially complete the product approval process, which typically takes around a year.

Bloomberg ETF Analyst Eric Balchunas expressed doubt about the ETF’s viability on social media, questioning whether it meets the requirements to “pass through,” since it needs to have futures products on an exchange for a minimum of six months.

Balchunas stated, “It doesn’t seem to exist as I understand,” though he acknowledged it might fit within the 1940 Investment Companies Act, also known as the “40 Act” fund.

Unlike standard crypto ETFs that involve submitting Form S-1 and Form 19B-4 for SEC registration, 40 Act Funds have a different regulatory approach.

Rex Capital also applied for an ETF associated with Trump under the 40 Act, which aims to invest in offshore companies holding the tokens.

ETF Store President Nate Gelach referred to this strategy as a “regulatory end-around.”

Caution from Industry Leaders

Canary’s filing suggested that the investment may not be suitable for all shareholders, noting that it likely entails more risk than typical products traded on exchanges that don’t own $Trump.

The document pointedly described the stock as speculative securities.

This disclaimer followed remarks from Rex Financial CEO Greg King, who cautioned ETF publishers about tracking cryptocurrencies, stating that the market is “pretty rough” outside the top 10 cryptocurrencies, and certainly below the top 20.