- A crypto ETF (cryptocurrency exchange traded fund) is traded on traditional stock exchanges that tracks the price of one or more cryptocurrencies, like Bitcoin or Ethereum.
- An ETF allows investors to gain exposure to cryptocurrencies without having to directly buy or store the crypto themselves.
- Memecoins are cryptocurrencies typically created as jokes or internet memes but can gain real value and popularity due to online hype and community support.
Bloomberg ETF analyst Eric Balchunas says momentum is growing for the launch of the first ever meme coin focused (ETF) in the United States.
In fact, industry experts predict it may be here by 2026, highlighting the increasing shift toward more specialized cryptocurrency investment products.
In a social media post on X, Balchunas emphasized that an initial wave of actively managed crypto ETFs could pave the way for niche offerings like meme coin ETFs.
Unlike traditional passive ETFs, these funds would dynamically adjust their holdings, favoring top performing tokens while divesting underperformers.
The recent explosive growth in meme coin trading has attracted significant attention from ETF issuers. This growth pushed the sector’s market capitalization above $60 billion this year.
Several firms have already submitted applications for meme coin ETFs, and await regulatory decisions from the U.S. Securities and Exchange Commission (SEC). Many of the firms have shown interest in Dogecoin, $TRUMP, and Bonk tokens.
However, despite the growing enthusiasm, market sentiment around meme coins has cooled since its peak in early 2024. Dogecoin, Shiba Inu, Pepe, and $TRUMP have all experienced significant price declines, ranging from 60% to over 85% as well.