Investment managers Rex Shares and Osprey Funds have submitted an application to launch an exchange-traded fund (ETF) based on Movement, the Ethereum Layer 2 network token. The filing makes it the first ETF associated with the recently decentralized blockchain. Movement has announced that it is set to launch the beta version of the mainnet.
In a prospectus filed on Monday, the fund will devote 80% of the net as MOVE tokens or related derivatives by channeling the fund into a REX-Osprey MOVE Subsidiary. The approval of the SEC requires an acknowledgment from the U.S. Securities and Exchange Commission before any action can be taken on it.
Movement’s co-founder Rushi Manche highlighted that the ETF filing was an important step for the company. “Breaking the pattern of ETFs limited to long-established cryptocurrencies opens doors for institutional capital to support next-generation blockchain innovation,” Manche stated.
Recent ETF applications for altcoins, including XRP, SOL, and HEDERA, reveal an increasing trend of seeking institutional investment and adopting digital assets. Rex Shares and Osprey Funds had also requested funds tracking assets, including BONK, DOGE, and TRUMP memecoin.
Movement’s development and controversies
Movement was built using the MoveOS programming language initially by Meta, a company that had planned to use it on Diem, its former stablecoin. Its implementation has also been criticized for not being transparent enough.
The Movement Network Foundation officially released Movement Mainnet Beta on 30th November, but its deployment was delayed until 9th December. The network recently incorporated RPC service, and a core mainnet release is expected before the 10th of March.
This ecosystem will launch the Cornucopia program to seed $250 million for the Movement Public Mainnet Beta. However, the team has faced much criticism over its political affiliations. Manche earlier defined politics as a major approach of crypto companies, other blockchain initiatives share the same opinion to inevitably adapt to the pro-crypto Trump administration.
An unplanned Movement devnet launch in January raised some eyebrows after a DeFi startup, World Liberty Financial, connected to the Trump family, bought $2 million worth of MOVE tokens just a few minutes before reports emerged that indicated Movement was in talks with Musk about some integration to blockchain. Manche also dismissed accusations of insider trading.
Under the leadership of the new commissioner, Acting Chair Mark T. Uyeda, the SEC is more friendly towards the crypto space. However, it has not authorized ETFs indexed to anything besides Bitcoin and Ethereum. The Movement ETF filing will go through the approval process before any action is made. This will provide a template for future digital assets.
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