Rex Shares, Osprey Seek Movement ETF Approval as Ethereum Layer-2 Mainnet Launches – Decrypt

Fund issuers Rex Shares and Osprey Funds have submitted an application for an exchange-traded fund tracking the price of MOVE, according to a filing Monday with the Securities and Exchange Commission.

The Rex-Osprey MOVE ETF would be the first focused on the native token of the Movement Network, an Ethereum layer-2 scaling network.

“Breaking the pattern of ETFs limited to long-established cryptocurrencies opens doors for institutional capital to support next-generation blockchain innovation,” Movement Labs co-founder Rushi Manche said in a press release.

The filing follows a flurry of SEC applications for ETFs tracking altcoins as issuers aim to satisfy increasing demand for digital asset-focused investment products. In recent weeks, issuers have submitted filings for funds that track the ongoing performance of Cardano, Solana, Litecoin, Hedera, and XRP. Last week, Canary Capital took an initial step toward an application for an ETF based on Sui.

It also comes amid rising interest in Movement, which on Monday announced the debut of its public mainnet beta with $250 million in total value locked. Movement introduced MOVE in December through an $830 million airdrop. Major crypto exchanges Coinbase and Binance already support MOVE trading.

The ETF would invest at least 80% of its assets in the token, but may also invest in derivatives whose value would be based on MOVE. The SEC must acknowledge the filing, which would then generate an initial period for public review.

MOVE was recently trading at about $0.50, up 4% over the past 24 hours as major assets like Bitcoin and Ethereum show losses amid broader market turmoil. Even so, MOVE remains well off its high price above a dollar, last reached in January, according to crypto data provider CoinGecko. It has a current market cap of nearly $1.2 billion.

Rex Shares and Osprey Funds have previously applied for ETFs based on the performance of meme coins Dogecoin (DOGE),  Bonk (BONK), and Donald Trump’s own Solana-based TRUMP.

The 11 funds focused on the spot price of Bitcoin have generated about $40 billion in net inflows since launching last year.

Edited by Andrew Hayward