US President Donald Trump recently addressed his highly publicized $TRUMP token, a Solana-based memecoin, for the first time in a meeting. 

Trump, who had previously launched the token on social media, admitted during a recent executive meeting, “I don’t know much about it other than I launched it,” adding that he had “heard it was very successful.” His comments come amid a series of high-profile developments involving the token, including the reports of a TRUMP ETF “in the works” that could track the memecoin.

TRUMP Token’s Meteoric Rise and Subsequent Decline

The $TRUMP token caused a stir over the weekend when its market capitalization soared to over $13 billion. This rapid growth briefly positioned it as the second-largest meme coin in the world, just behind Dogecoin. 

However, the token's success was short-lived, as its market cap has since dropped to around $8 billion, and the token now trades at approximately $41.3. The sudden volatility has raised questions about the sustainability of the coin and the role of insider ownership in its rise and fall.

The fluctuations in the token’s market cap occurred shortly after the launch of a new memecoin by First Lady Melania Trump. 

The Rex-Osprey Trump ETF Filing: What You Need to Know

Amid these developments, a new securities filing revealed that an ETF issuer is rushing to launch a fund that will track the $TRUMP token. The proposed fund, named the Rex-Osprey Trump ETF, may gain exposure to the token through a Cayman Islands subsidiary. This filing comes just days after the $TRUMP coin's launch, on the heels of a wave of new crypto-related ETF filings.

However, the filing also raised concerns about potential regulatory hurdles. The Rex-Osprey Trump ETF appears to be structured differently from typical crypto ETFs, particularly those tracking major coins like Bitcoin and Ethereum. These differences could help the fund launch more quickly, but they also raise the possibility that the proposal could face rejection from regulators.

Potential Ethical Concerns

While the $TRUMP token has garnered attention for its rapid rise, there are growing concerns about its implications for market manipulation and ethical issues. The supply of both the $TRUMP and Melania Trump’s memecoins is widely believed to be controlled by individuals within the Trump family circle. This raises questions about whether the coins' value is being artificially inflated by insider ownership.

Financial services firm TD Cowen has warned that the sudden rise of presidential memecoins could derail bipartisan efforts to pass comprehensive crypto legislation. 

"Democrats are going to demand details on whether foreign governments and business interests used token purchases to curry favor with Team Trump," TD Cowen wrote in a note. "This puts at risk the ability to advance the crypto bill with the bipartisan support it will need to become law."

Despite the controversies surrounding the $TRUMP token, major cryptocurrency platforms like Coinbase and Robinhood have already listed the token, which continues to hold a multibillion-dollar market cap.

President Trump has hinted at his plans to introduce an executive order making cryptocurrency a national policy priority. Additionally, Trump has reportedly tapped venture capitalist David Sacks to serve as the “crypto czar” in his administration. If these plans come to fruition, they could significantly shape the future of crypto policy in the U.S.