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Rex Shares has filed for several meme coin ETFs, including TRUMP, BONK, and DOGE. The firm is also attempting to begin offering several more conventional crypto ETFs, such as Bitcoin and Ethereum.

The crypto community has debated the practicality of meme coin ETFs, and it’s unclear how the SEC will react.

Could Rex Share Create Meme Coin ETFs?

Now that former Chair Gary Gensler has left the SEC, it’s looking like an open season for new crypto ETFs. A wave of altcoin ETF applications began last Friday, but Trump’s inauguration has kicked the process into overdrive.

Today, ETF analyst James Seyffart noted that Rex Shares filed a broad array of meme coin ETFs despite offering no products beforehand.

“That was fast. Rex Shares and Osprey have filed for a bunch of crypto ETFs including meme coins TRUMP, BONK, and DOGE. Also includes ETFs for Bitcoin, Ether, Solana, and XRP. Notably, these products [will] hold a combo of derivatives, the assets, and a subsidiary. This looks similar to a playbook issuers use in the commodity ETF world,” Seyffart said.

Before this sweeping set of regulatory changes, Rex Shares had little connection with the crypto ETF world. It proposed a Bitcoin Corporate Treasury Convertible Bond ETF in late December, but otherwise, has not offered any products.

However, the SEC’s changing regulatory stance has created optimism for digital assets to become more integrated into the retail market. Earlier today, the SEC formally created a Crypto Task Force to bring more regulatory clarity to the industry.

These transformative initiatives could very well open doors for different crypto ETF products. There are already rumors about Litecoin and XRP ETFs winning approval early this year. So, it’s evident that Rex is simply capitalizing on this trend.

However, the idea of a meme coin ETF is not going well with everyone. ETF analyst Eric Balchunas called Rex Shares’ proposal “surreal” and alluded to nostalgia for Gensler’s approach. This attitude has become surprisingly popular since Trump launched the TRUMP meme coin, a highly controversial move.

“There are 30+ fillings for new digital asset ETFs in the US, a lot are focused on SOL or XRP ETFs and even one filing is for a TRUMP ETF. No guarantee they’re going to get approved – but definitely worth keeping an eye on the influx of applications and assets they’re filing for,” wrote Jacquelyn Melinek.

Is the Meme Coin Craze Getting Out of Hand?

It’s arguable that the bullish sentiment in meme coins is taking a dark turn, as rug pulls are proliferating and these tokens are reducing interest from other important industry sectors.

When the SEC first approved a Bitcoin ETF, it was considered the gold standard of institutional approval. Rex Shares is trying to make an ETF out of several meme coins, which seems far less prestigious.

Nevertheless, the TRUMP meme coin has reacted to this news. The token surged by nearly 8% in the past hour after declining throughout the day.

TRUMP Daily Price Chart. Source: TradingView

Ultimately, it’s up to the SEC to decide how far the ETF wave will go. In their farewell letter to Gensler, the two most pro-crypto Commissioners still expressed a “deep gratitude” for his friendship and “zealous advocacy.”

In other words, Rex Shares’ ETF pitches may not amount to much. Their possibility, however, has left the crypto space divided.