The intersection of politics and cryptocurrency took center stage in Trump's first days as president, as his administration's pro- crypto stance triggered a flood of new investment products and digital tokens, according to Securities and Exchange Commission filings and regulatory documents.
Within hours of taking office, Trump issued executive orders aimed at reducing crypto regulations and ending what his administration called "Operation Choke Point 2.0," which had restricted crypto firms' access to banking services.
The flurry of activity—spanning presidential policy changes, personal crypto ventures, and a rush of Wall Street investment products—highlights an unprecedented merging of political power and digital assets that could reshape the industry, while raising concerns about conflicts of interest as a sitting president's brand becomes directly tied to volatile crypto markets.
The policy shifts coincided with the launch of Trump-themed crypto tokens, with both $TRUMP and $MELANIA coins experiencing dramatic price swings. The $TRUMP coin reached a market cap of nearly $15 billion shortly after launch, while the $MELANIA token surpassed $2 billion, according to trading data from CoinMarketCap.
Asset managers moved swiftly to capitalize on the momentum. Rex Shares and Osprey Funds filed for a Trump-themed ETF Tuesday, designed to track Trump-associated cryptocurrencies and blockchain projects, according to SEC filings. The companies also seek to offer exposure to established cryptocurrencies like bitcoin and emerging tokens like Dogecoin and the Bonk meme coin.
The New Crypto Investment Landscape
The wave of political crypto products comes amid broader institutional interest in digital assets. ProShares filed for eight new cryptocurrency ETFs targeting two major cryptocurrencies— Solana and XRP —with each getting four different investment approaches, according to SEC filings.
For both tokens, ProShares plans standard ETFs that simply track the cryptocurrencies' performance, as well as more complex versions for sophisticated traders. The "Short" funds aim to deliver the opposite of the daily performance, while "Ultra" versions seek to double the daily returns. According to the SEC documents, the most aggressive "UltraShort" variants target twice the opposite performance . This means if Solana drops 5% in a day, the UltraShort fund aims to gain 10%.
Calamos Investments followed with three Bitcoin-focused ETFs offering downside protection levels ranging between 80% and 100%, aiming to address volatility concerns in the crypto market. The funds are set to launch throughout 2025, according to a Tuesday press release from the firm.
However, the administration's cryptocurrency agenda extends beyond just investment products. Trump's first-day executive actions included creating a crypto advisory council and directing the SEC to revisit costly accounting guidelines for cryptocurrency holdings.
These moves represent a sharp departure from previous regulatory approaches. The Trump administration aims to end practices that have pushed crypto firms away from traditional banking services, potentially opening new avenues for institutional crypto adoption.
Despite the surge in crypto-related activity surrounding Trump's return to office, his inauguration speech made no direct mention of cryptocurrency or digital assets. The silence triggered price drops across the crypto market, with the $TRUMP and $MELANIA tokens falling sharply after the speech, CoinMarketCap data show.
For the broader cryptocurrency industry, Trump's first days signal a potential shift toward more accommodating policies, even as the rush of political tokens and themed investment products adds new complexity to an already volatile market.
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