The Solana memecoin, BONK just launched an exchange-traded product, an ETP in the United States.
The BONK team revealed at the Solana Breakpoint event in Singapore that the product will be Series 504 and 506 Trusts designed for both institutional and retail investors.
Bonk Inu ETP, one memecoin over all?
The ETP was developed in collaboration with Osprey Funds and will be available on OTC markets.
The exact launch date hasn’t been disclosed, the news has created loud hype in the BONK community, leading to a small jump in the token’s price.
Tbh BONK is still down nearly 1% from its peak price and has dropped 60% from its ATH.
Many supporters believe that this ETP could mean a turning point for BONK, with hopes that it might eventually lead to an ETF once regulations allow it.
BONK investment requirements
In short, it isn’t your dex apeing game anymore. Less shortly, the details about the ETP were limited in the initial announcement, but Osprey Funds provided more information on its website.
The BONK Trust is intended only for accredited investors, allowing them to gain exposure to BONK by tracking its price.
To qualify as an accredited investor, individuals must meet pretty strict criteria, as they need to earn at least $200,000 annually or $300,000 as a couple and have a net worth exceeding $1 million, or they must be licensed investment professionals.
Institutional investors must have at least $5 million in liquid assets or ensure that all beneficial owners are accredited investors. Big dog league, not the degenland. What a time to be alive.
The minimum investment amount for the BONK Trust is set at $10,000, which limits access for many smaller traders interested in memecoins.
Still, this requirement could pretty much attract institutional capital if it generates enough interest from savvy investors willing to pay a 2.5% management fee.
Copper will act as the custodian for the Trust, while Theorem Fund Services will manage it. Now the fund is only available for private subscriptions, but there are plans to apply for listing once it meets OTC listing standards.
Growing interest in crypto ETPs and ETFs
Crypto-focused ETPs are gaining popularity both globally and in the U.S., so the launch of the BONK Trust is well-timed.
This year has seen big mainstream adoption of crypto ETPs, especially after the SEC approved spot Bitcoin and Ether ETFs.
The total assets under management for crypto ETPs already jumped past a record high of over $100 billion in March.
This is nearly a 100% increase from $51 billion in AUM for digital asset investment products at the end of 2023.
Total Digital Asset ETPs passed the US$100bn mark for the first time ever. pic.twitter.com/n9if8AB1MT
— James Butterfill (@jbutterfill) March 14, 2024
As interest in crypto ETPs continues to rise, products like the Bonk Inu ETP could pave the way for more development within the memecoin sector, and few years from now maybe we will see these numbers as rookie numbers.
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