Two asset managers filed plans Tuesday to launch funds tracking a new Trump-linked cryptocurrency, as ethics experts warn about potential conflicts between the president’s regulatory role and his digital assets.
REX Advisers and Osprey Funds asked the Securities and Exchange Commission to approve seven cryptocurrency ETFs, including funds tied to the $TRUMP token, which launched just before Trump’s inauguration.
Trump Organization affiliate CIC Digital LLC and Fight Fight Fight LLC issued the token, which has swung from $10 to $74.59 before settling at $44 Tuesday. CoinGecko data shows the volatility has pushed its paper value to $8.9 billion.
The issuing companies, which hold 80% of the tokens, market them as “fungible crypto assets” and “expressions of support” rather than investments or securities. Their stake potentially gained billions in value over the weekend.
“This is the wild west now,” said Todd Sohn, ETF strategist at Strategas, describing the rush to launch crypto products.
Ethics experts warn about the president’s cryptocurrency involvement while he holds regulatory power. “It deepens his engagement in a world that raises real national security concerns,” said Danielle Brian, who heads the watchdog group Project On Government Oversight.
Representative Maxine Waters, top Democrat on the House Financial Services Committee, cautioned that “anyone globally, even individuals who have been sanctioned by the US… can now trade and profit off of $TRUMP through various unregulated platforms.”
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