Ah, dear reader, gather ’round as we delve into the curious case of memecoin ETFs, a phenomenon that has captured the attention of investors and market watchers alike, much like a moth drawn to a flickering flame. The air is thick with anticipation, and analysts, those modern-day prophets, are whispering sweet nothings about their potential launch.
In a recent outburst of optimism, Bloomberg analyst Eric Balchunas, a man of considerable insight, took to the digital ether of X to share his musings. He responded to a post that dared to suggest that a memecoin ETF could indeed be a promising venture. Oh, the audacity! But who are we to scoff at such dreams?
Balchunas, with the fervor of a man who has seen the light, proclaimed that the crypto ETF market is poised for a veritable tsunami of actively managed funds by the winter of 2025. And lo! A memecoin-focused era may follow in 2026, as if the heavens themselves have decreed it. One can almost hear the angels singing, or perhaps that’s just the sound of investors holding their breath.
“Really good chance this exists at some point. First we’ll get slew of active crypto ETFs (eta Winter 2025). Active meme coin-only likely 2026 tho. The return dispersion (and lack of sell side coverage) ripe for active. Could produce next star manager. Who knows.”
— Eric Balchunas (@EricBalchunas) June 7, 2025
He further elaborated, with a twinkle in his eye, that the memecoin market’s historical performance makes it “ripe for active management.” Ah, yes, volatile and lacking utility, yet somehow, in this chaotic dance of numbers, there lies a potential for greater gains. It’s like finding a diamond in a pile of rubble—if only one could avoid the sharp edges!
On the regulatory front, Balchunas pointed out that the fate of memecoin ETFs hangs precariously on the whims of the SEC, that enigmatic body of regulators. Their decision regarding the pending Dogecoin ETF filings will undoubtedly shape the future of these funds. Perhaps they will find a way to structure these funds under the venerable 1933 Act, making the approval process as smooth as a well-aged vodka.
And so, we find ourselves in a state of limbo, waiting with bated breath for the SEC’s response regarding the original memecoin, Dogecoin. Will it be a triumphant return or a disheartening delay?
Doge ETF Approval Stalls
In recent months, the Securities and Exchange Commission has been inundated with applications for spot exchange-traded funds tied to Dogecoin. Bitwise Asset Management, among the first to file in January, has been joined by others, including 21Shares, Grayscale, and Rex Shares. A veritable parade of hopefuls!
Yet, the SEC, in its infinite wisdom, has chosen to delay its decision, leaving the approval process dangling like a poorly tied shoelace. Market expectations have plummeted, with Polymarket data now revealing a mere 44% chance of approval this year, down from a lofty 70%. Confidence, it seems, is a fickle mistress.
Analysts, those brave souls, have noted that the controversial nature of memecoins remains a formidable barrier to ETF approval. However, with regulations evolving and a burgeoning ecosystem worth over $60 billion in market cap, one cannot help but feel a glimmer of hope. Perhaps, just perhaps, these ETFs will find their way into the light.
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2025-06-09 13:05