REX-Osprey files for MOVE ETF
Asset manager REX-Osprey is reportedly in pursuit of launching an exchange-traded fund (ETF) centered on the Movement Network’s native token, MOVE. This move was officially disclosed in a filing made on March 10, coinciding with the launch of Movement’s public mainnet beta. This layer-2 (L2) blockchain network, which utilizes the Move programming language, seeks to provide an innovative alternative in the rapidly evolving landscape of cryptocurrency investment.
The proposed ETF signifies a noteworthy shift as it aims to provide traditional investors a regulated pathway to engage with emerging blockchain technologies without the complexities associated with directly managing cryptocurrencies. Cooper Scanlon, co-founder of Movement Labs, articulated that there has been substantial interest from traditional investors in such offerings.
The Movement Network operates on Ethereum’s L2 framework, facilitating more efficient and scalable transactions through its unique underlying architecture. Approximately $250 million is reported to be locked in total value within its public mainnet, while the MOVE token boasts a fully diluted market valuation of around $5 billion, according to CoinMarketCap.
Although the U.S. Securities and Exchange Commission (SEC) has previously authorized ETFs for Bitcoin and Ether, it has yet to approve any for alternative cryptocurrencies, as of now. Rushi Manche, another co-founder at Movement Labs, expressed optimism that allowing a broader range of altcoin ETFs could open new avenues for institutional capital to flow into next-generation blockchain innovations.
The current pattern of asset managers competing to establish ETFs related to various altcoins is gaining momentum. Just days prior to REX-Osprey’s announcement, Bitwise submitted a request to list a spot Aptos ETF. Aptos, launched by a team of former employees from Facebook (now Meta) in 2022, exemplifies the influx of novel digital assets seeking institutional acknowledgment.
Recent filings indicate that other well-known altcoins, including Polkadot’s DOT, Litecoin (LTC), and Solana (SOL), are also in the queue for potential ETF listings. Nasdaq has indicated its interest in listing a Grayscale ETF for Polkadot, while anticipated approval rates for Litecoin and Solana ETFs are considered promising, with estimates of 90% and 70%, respectively.
The regulatory framework surrounding cryptocurrency in the United States finds itself in a pivotal phase. With voices like that of U.S. President Donald Trump expressing a desire for the country to emerge as the “world’s crypto capital,” and with pro-crypto individuals placed strategically within regulatory bodies, the landscape is poised for significant evolution.
In this evolving dialogue on altcoin ETFs, these developments might not only reshape how institutional capital interacts with the crypto ecosystem but also consolidate the role of alternative cryptocurrencies further into mainstream investment narratives.
