According to Binance, Dogecoin (DOGE) trades for $0.2094 as of February 27, 2025. That’s more than 43% below its recent high-water mark, hit during the aftermath of the 2024 U.S. Presidential election. However, after DOGE’s latest slump, an emerging potential catalyst could positively impact prices.
Following the debut of the first Bitcoin exchange-traded funds (ETFs) last January, the crypto ETF space has been growing at a rapid pace. Not only have ETFs for other major cryptocurrencies, such as Ethereum, hit the market. Pretty soon, the first meme coin ETFs could be on their way.
At least, based on recent Securities and Exchange Commission (SEC) filings from a pair of investment management firms seeking to sponsor a series of TRUMP memecoin-focused funds.
Admittedly, right now it’s unclear whether these potential TRUMP ETFs will get the SEC greenlight.
However, following the TRUMP ETF news, plus news of plans for a Dogecoin-themed ETF, an increasing number of compliance, financial, and regulatory experts are calling into question the ethics of launching memecoin ETFs.
Crypto Fund Managers File for TRUMP, DOGE ETF Approval
Last month, not too long after TRUMP’s trading debut, investment management firms Rex Shares and Osprey Funds applied for SEC approval for several memecoin-focused ETFs.
As mentioned above, this includes TRUMP-themed ETFs. Alongside this, Rex and Osprey are also looking to launch a Dogecoin-themed ETF. Speaking of Dogecoin, Rex and Osprey aren’t the only managers looking to capitalize on the investing public’s appetite for memecoins.
Greyscale, one of the more established crypto asset management companies, has also filed an application for SEC approval of a Dogecoin-themed exchange-traded fund.Even as it’ll likely take months for the SEC to get back to these applicants, much suggests that these products will ultimately receive the regulatory greenlight.
With the Trump administration working to implement a pro-growth, pro-industry regulatory regime, and with the current SEC head a Trump appointee, it’s hard to see regulators saying “no dice” to Rex and Osprey’s proposal Likewise, it’s hard to see Dogecoin failing to obtain regulatory approval.
A Matter of Ethics
The launch of TRUMP and DOGE ETFs may be a matter of “when” than “if,” but that isn’t stopping critics of these launch plans from calling them out, citing the inherent ethical quandary that comes with these proposed products.
The key difference between memecoins and established cryptocurrencies such as Bitcoin and Ethereum has to do with utility. While BTC and ETH have high utility and multiple use cases, that’s not the case with DOGE, TRUMP, and other popular memecoins. Sentiment among speculators is what largely drives their value.
This helps to explain the higher degree of skepticism about the ethics of launching memecoin ETF products. It’s questionable whether institutional investors, bound to invest prudently, will be/should be allowed to invest in financial products where the underlying asset has zero intrinsic value.
Alongside this, critics have also pointed out the ethical gray area that comes with the current sitting U.S. President being involved with one of the memecoins in question. Again, it’s hard to see the Trump-appointed SEC head rejecting plans for TRUMP ETFs, but conversely, a Trump-appointed SEC head approving said products could invite conflict of interest allegations.
Bottom Line
Questions about ethics and financial responsibility aside, another question on the minds of investors in light of this news may be, “will memecoin ETF launches spark another rally for TRUMP and DOGE?”
Again, DOGE has been slumping in recent months. TRUMP hasn’t been faring so well lately, either. After surging ahead of President Trump’s inauguration, TRUMP has fallen by nearly 75% from its highs. The meme coin is still up from its debut price, but investors who bought in at the height of last month’s speculative frenzy are likely underwater in their positions.
It’s too early to say whether TRUMP and DOGE ETF launches would lead to renewed bullishness for either or both of these popular meme coins. That said, last year’s launch of Bitcoin ETFs is regarded as being a positive catalyst for BTC, and a major factor behind its strong performance during 2024. With ETFs focused on DOGE and TRUMP, history could repeat itself.
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