With Bitcoin and Ethereum ETFs already approved in the United States, experts have started to speculate the potential launch of meme coin ETF. After suffering a legal setback in its lawsuit against Grayscale, the U.S. securities and exchange commission (SEC) has taken a U-turn in its stance on crypto ETFs.
Earlier, the regulator had maintained a negative stance on the products, stressing that they could provide an avenue for people to commit more fraud. While fund managers tried to crypto to the mainstream, the SEC dragged its feet for almost a decade until it finally gave in this year.
Insights into crypto ETF products in the United States
In January, the first-ever crypto ETF applications were approved in the United States. Then, the regulator approved 11 Bitcoin exchange-traded funds applications, including BlackRock, Ark Investments, Fidelity, VanEck, Invesco, and more. Most of the approves ETF products commenced trading immediately, creating a fierce competition for market share.
Since debut, these financial instruments have been highly successful, boasting net cumulative inflows exceeding $35 billion. This development clearly shows that the investing community is truly interested in what crypto ETFs have to offer. In recent months, BlackRock’s IBIT ETF has been leading the charge, amassing over $19 billion on its own. Fidelity sits next to BlackRock, boasting almost $10 billion in net flows.
Ethereum ETFs
That being said, few months after all approved Bitcoin ETFs went live, the SEC took the market by storm by approving same for the second largest crypto by market cap, Ethereum. Some of the applications approved include VanEck ETHV, Grayscale Ethereum Mini Trust, BlackRock, Bitwise, and Invesco Galaxy. The final launch of these offerings places a lasting end to an 8-month approval process between the SEC and ETH ETF issuers. Meanwhile, within just a few days of trading, these products hit a cumulative trading volume of over $900 million.
With Bitcoin and Ethereum ETFs secured and making strong waves, fund managers like VanEck have now taken a step further to seek the approval of Solana ETF. In a June 27 Twitter post, Matthew Sigel, the head of digital asset research with VanEck confirmed the submission of the first-ever Solana ETF application in the U.S. to the SEC.
Describing it as the VanEck Solana Trust, Sigel said the product will ride on Solana’s market appeal and utility to lure many investors. Likewise, in Canada, top crypto asset managers like 3iQ have also stepped forward to seek the approval of its Solana ETF product. These trends underscore the rapid mainstream attention on crypto.
Meme Coin ETF is next?
That said, there are indications that meme coins could be the next crypto niche to steal the spotlight. In recent weeks, two popular crypto analysts and experts extensively discussed the future potential of meme coins, highlighting the potential launch of a Dogecoin ETF in the coming months.
One of the most prominent personalities who has mentioned the possible launch of a meme coin ETF is Arthur Hayes. In a YouTube podcast, he predicted that Dogecoin could get an ETF by the end of the cycle. Hayes’ prediction is based on the level of growth that has greeted the dog-themed meme coin in the past years. The BitMEX co-founder said Dogecoin, being the meme coin king, has an edge over other tokens in that niche.
Similarly, the co-founder of Real Vision, Raoul Pal shares the same position with Hayes. Pal said he already discussed the possibilities of a potential launch of Dogecoin ETF with the CEO of VanEck, Jan Van Eck. As such, he is optimistic that the next crypto ETF filing would be for Dogecoin, emphasizing his background efforts to make this happen anytime soon.
Bottom Line
With meme coins gaining more ground and outperforming major cryptos, there’s a chance that Dogecoin ETF is on its way. This possibility will enhance the investment experience of the token, expose it to a wider audience, and drive its price performance. While there’s no big sign yet, experts remain optimistic that it might happen even sooner than expected.