The potential for the first-ever memecoin-based exchange-traded funds (ETFs) has significantly increased, thanks to fresh leadership at the U.S. Securities and Exchange Commission (SEC), according to industry experts speaking to us. Despite the rising likelihood of these ETFs gaining approval and the strong rally sparked by the launch of President Donald Trump’s Official Trump (TRUMP) memecoin, Cathie Wood, CEO of ARK Invest, has expressed that she will not invest in Trump’s coin, opting to continue focusing on the three largest cryptocurrencies instead.
TRUMP, DOGE, and BONK ETFs “More Likely” to be Approved under New SEC Leadership
Memecoin-based ETFs are gaining momentum, especially with the recent surge in filings following the release of the Trump family’s memecoins, which have garnered substantial retail attention. The SEC has already received its first ETF filings for TRUMP, Dogecoin (DOGE), and Bonk (BONK), as reported by us on January 21. Dmitrij Radin, founder of Zekret and CTO of Fideum crypto regulatory firm, commented, “The approval of TRUMP, BONK, and DOGE ETFs is more likely now with Trump’s new crypto-friendly SEC picks. This move could bring more liquidity and mainstream acceptance to memecoins.”
Cathie Wood Won’t Invest in TRUMP Coin, Sticks to “Big Three” Cryptocurrencies
In a Jan. 22 interview with Bloomberg, Cathie Wood acknowledged that Trump is leading the way for the next phase of the crypto revolution, but she remained cautious about investing in TRUMP coin. She emphasized that while the token may generate excitement, its lack of utility made it less appealing for serious investment.
“TRUMP isn’t going to have any utility… there’s speculation you might meet President Trump as a benefit of owning the coin, but so far, we don’t know of much utility for this coin, except that it is a memecoin of President Trump himself,” Wood said. She compared the current wave of memecoins to the initial coin offering (ICO) craze of 2017.
Trump Family Could Build “Giant Businesses” on Ethereum: Joseph Lubin’s Remarks
Speculation has been circulating that the Trump family might expand its ventures into the cryptocurrency space by launching businesses based on Ethereum. Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, hinted at this possibility in a Jan. 21 post on X.
“From what I know, the Trump family is likely to create one or more major businesses on the Ethereum platform.” Lubin wrote, further suggesting that the Trump administration’s focus on Ethereum would be beneficial for the U.S. economy.
U.S. Court Overturns Tornado Cash Sanctions in Landmark Case for Crypto
In a landmark ruling, a U.S. court overturned the sanctions previously placed on the Tornado Cash cryptocurrency mixing protocol by the U.S. Treasury’s Office of Foreign Assets Control (OFAC). The sanctions had been imposed in August 2022, accusing Tornado Cash of facilitating money laundering by the North Korean Lazarus Group. The court’s decision marks a significant shift toward more innovation-friendly regulations for privacy-preserving technologies, as it paves the way for a reconsideration of OFAC’s original stance.
Phemex Halts Withdrawals After $29 Million “Suspicious” Outflows
Phemex, a cryptocurrency exchange, suspended withdrawals after detecting over $29 million worth of suspicious outflows. These transfers involved multiple blockchains, including BNB, Polygon, Arbitrum, and Base, raising concerns among blockchain security firms. According to Cyvers, an on-chain security firm, the outflows came from Phemex’s hot wallets and were connected to “suspicious transactions” involving asset swaps to Ethereum (ETH).
DeFi Market Overview
According to data from our Markets Pro and TradingView, most of the top 100 cryptocurrencies by market capitalization showed positive performance this week. The TRUMP token saw an explosive rise of over 429%, leading the weekly gains, followed by Raydium (RAY) with a 38% increase. Thank you for reading our summary of this week’s most significant DeFi developments. Stay tuned for more stories, insights, and education on the ever-evolving crypto landscape next Friday.
Conclusion:
This week has seen several notable developments in the crypto world, particularly surrounding the potential approval of memecoin-based ETFs and the regulatory landscape under new SEC leadership. While some, like Cathie Wood, are cautious, the increasing attention toward Trump’s memecoin and the expanding role of Ethereum-based businesses suggests that the digital asset market continues to evolve rapidly.
FAQs:
What are memecoin-based ETFs?
Memecoin-based ETFs are exchange-traded funds that focus on cryptocurrencies based on memes, like Dogecoin, Bonk, and the new Trump coin. These ETFs provide a way for investors to gain exposure to the memecoin market.
Why is the SEC likely to approve memecoin-based ETFs?
The SEC is expected to approve these ETFs under the leadership of Mark Uyeda, who is considered more crypto-friendly. His appointments could lead to greater acceptance and liquidity for memecoins in mainstream financial markets.
Why isn’t Cathie Wood investing in TRUMP coin?
Wood has expressed that TRUMP coin lacks utility, which makes it less attractive for investment. She prefers to focus on the top three established cryptocurrencies that offer more long-term growth potential.
What’s the significance of the U.S. court overturning Tornado Cash sanctions? This ruling could signal a shift toward more crypto-friendly regulations, particularly for privacy-preserving technologies. It may lead to a more favorable environment for innovation in the space.
Why did Phemex halt withdrawals?
Phemex halted withdrawals after suspicious transactions involving over $29 million in digital assets were detected. The funds were traced across several blockchains, raising concerns about potential security risks.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
I believe that Web3 is not only a technological shift but a cultural and creative one. Strong ideas, thoughtful communication, and human-centered design will shape which technologies thrive and how communities evolve around them. My writing and research reflect this belief, focusing on clarity, relevance, and long-term perspective.
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