Crypto Thought of the Week: Could Memecoin ETFs Be Coming Soon?

Meme coins, driven by viral internet memes and social media hype, have surged in popularity despite their often lack of utility. Coins like Dogecoin and Shiba Inu have reached astonishing valuations, making them some of the highest valued projects in crypto. Their popularity stems from factors such as social media-driven FOMO, celebrity endorsements (e.g., Elon Musk’s influence on Dogecoin), and strong community engagement. 

With the launch of Ethereum ETFs, the focus is now on other top cryptocurrencies, such as Cardano and XRP, potentially following suit. While Solana ETFs have not yet been launched, Ethereum’s move sets the stage for other major coins.

However, there’s also growing curiosity about meme coin ETFs. Despite their risky nature and the stigma attached, established meme coins like Dogecoin and Shiba Inu are generating interest. The big question is whether there will be enough market appetite for such ETFs. Matt Hougan CIO at Bitwise appeared on Thinking Crypto’s latest podcast. During their conversation, Hougan was asked about memecoin ETFs and if that is possible anytime soon. 

The CIO said, “I don’t know if they fit into the Bitwise framework of the world, but I will say that if you look at the broader ETF ecosystem, there are lots of ETFs that just exist as trading tools and are widely adopted and widely used. You can sort of answer this from two different viewpoints. You can have the fundamental critique of meme coins, but if people want exposure to them, why not let them get exposure to them in a safe, secure, familiar ETF package where custody is handled and trading is understood?”

He continued, “I think broadly speaking, that would be great. I don’t know that Bitwise is going to be in that game, but I would be supportive of these ETFs. Existing people are going to find exposure to these things one way or the other, and I would rather they do it on an ETF. That’s just a positive trade for society.”