Rex Shares and Osprey Funds have submitted a request to list an ETF based on MOVE, the native token of the Movement network, a new Layer 2 of Ethereum.
This move coincides with the launch in beta of the mainnet of Movement, marking an important moment for the cryptocurrency sector.
A new type of ETF for the crypto market based on MOVE
According to the prospectus filed on Monday, the fund would invest 80% of its net assets in MOVE tokens or in related derivative instruments, using a subsidiary named REX-Osprey™ MOVE Subsidiary.
The announcement was met with enthusiasm by the co-founder of Movement, Rushi Manche, who emphasized the importance of this initiative:
“This request represents a historic moment not only for Movement, but for the entire Move ecosystem. Surpassing the limit of ETFs based exclusively on consolidated cryptocurrencies opens new possibilities for institutional investment in the latest generation blockchain sector”
As it happened with other ETFs proposed on altcoin like XRP, SOL, and HEDERA, the SEC will first have to accept the filing of the request before deciding whether to allow the trading of the fund.
Rex Shares and Osprey Funds have already previously requested the listing of other ETFs on cryptocurrencies, including BONK, DOGE, and even TRUMP, the memecoin associated with the former president of the United States.
However, the current regulations still make the outcome of the proposal uncertain. Even though the interim SEC chairman, Mark T. Uyeda, has shown a more open approach towards the crypto sector, so far the regulatory body has only approved ETFs based on Bitcoin and Ethereum.
What is Movement and why is it important?
Movement is an experimental blockchain based on MoveOS, a programming language created by Meta for its now-defunct stablecoin project Diem (previously known as Libra).
Launched by the Movement Network Foundation, the Movement beta mainnet was announced on November 30, although full implementation occurred only around December 9.
Recently, the team introduced RPC support for the testnet and the mainnet, indicating that the full release could happen as early as March 10.
Furthermore, to encourage the adoption of the network, the foundation has announced a 250 million dollar funding for the so-called “Cornucopia Program”.
Despite the potential of the network, Movement has received criticism for its lack of transparency during the development phases. Furthermore, the project has been accused of political involvement and favoritism, an increasingly relevant aspect for companies in the crypto sector.
Recently, Rushi Manche had written a post (later deleted) in which he stated that:
“Politics is the most important go-to-market tool for crypto companies today”
The controversies do not end here: in January, a mysterious transaction raised suspicions.
World Liberty Financial, a DeFi startup linked to the Trump family, purchased 2 million MOVE tokens just 10 minutes before the news leaked about talks between the Movement team and Elon Musk regarding possible integrations with DOGE.
Many analysts have hypothesized a case of insider trading, but Manche has rejected these accusations.
The first ETF before the users?
The proposal of the ETF has sparked discussions on social media, with some users highlighting the originality of the situation. The well-known Twitter (X) user @andy8052 joked:
“The first blockchain to have an ETF even before having an active user. Revolutionary”
With the approach of the final launch of Movement and awaiting the response from the SEC, the crypto community is closely watching the evolution of the project.
If approved, the ETF could mark an important turning point for emerging cryptocurrencies, opening the doors to new institutional investments beyond Bitcoin and Ethereum.
However, doubts remain about the management of the project, its political connections, and the transparency of its development. The blockchain sector is constantly evolving, and the future of Movement will depend both on the reception by investors and on upcoming regulatory decisions.
