A proposed exchange-traded fund (ETF) linked to Donald Trump’s memecoin, ‘Official Trump’ ($TRUMP), has ignited controversy and raised questions about its regulatory approval. Canary Capital, the company behind the application, plans to directly hold and offer exposure to the token. However, analyst Eric Balchunas expresses skepticism regarding whether the ETF will overcome legal hurdles. He highlights a key challenge: the need for a futures product on an exchange for at least six months, which doesn’t seem to exist presently. Another potential avenue is the 40 Act fund structure, which was previously used by REX Shares in launching its Solana (SOL) staking ETF. This process allows for a different regulatory route. While Canary Capital believes this strategy may be unsuitable for investors who are not comfortable with high levels of risk, Rex boss Greg King cautions ETF issuers to be discerning about the cryptocurrencies they track, citing the market’s increasing volatility and questionable security in certain areas.