Memecoin ETFs Could Be on the Horizon as Market Interest Grows: Analyst

The possibility of a memecoin-focused exchange-traded fund (ETF) becoming a reality in the U.S. is gaining traction, with Bloomberg ETF analyst Eric Balchunas suggesting there’s a “really good chance” of such a fund launching in the near future. In a post shared on X, Balchunas noted that active crypto ETFs are expected to emerge first, followed by an actively managed memecoin-only ETF potentially debuting in 2026. This optimistic projection comes amid a surge in memecoin popularity, particularly among retail traders. The total market capitalization of these tokens has now surpassed $60 billion, driven by rapid trading and viral community hype. Balchunas responded to a suggestion from the Vladcoin team, who proposed a dynamic ETF that actively buys and sells memecoins based on market performance—selecting strong performers and dropping underperformers, unlike traditional ETFs that track a single asset. The Regulatory Path and Growing Demand The realization of a memecoin ETF, however, depends heavily on regulatory clarity. Balchunas pointed out that once tokens are no longer classified under the 1933 Securities Act, they could become eligible for inclusion in active ETFs. He also emphasized the importance of the pending Dogecoin ETF application, calling it a potential bellwether for the wider memecoin ETF space. Several notable firms—including Grayscale, Bitwise, and 21Shares—have submitted filings for a spot Dogecoin ETF . Meanwhile, Osprey Funds and Rex Shares have taken things further by seeking approval for ETFs focused on other trending memecoins like TRUMP and BONK. Despite this activity, the SEC has yet to approve any altcoin-based ETF , including applications for Solana, XRP, and Litecoin. Prediction market platform Polymarket currently places the odds of a Dogecoin ETF approval at just 44%, down from 75% earlier this year, reflecting a more cautious outlook from traders. Memecoin Market Struggles While long-term prospects for memecoin ETFs are being discussed, the short-term market performance tells a different story. After peaking in January, most leading memecoins have seen dramatic price corrections. Dogecoin is down 75%, Shiba Inu has lost 85%, and TRUMP is down 86% from its all-time high. Despite the recent slump, the continued community interest and potential for ETF exposure suggest that the sector may yet find a more formal place in the investment ecosystem. The post Memecoin ETFs Could Be on the Horizon as Market Interest Grows: Analyst appeared first on TheCoinrise.com .

Source: The Coin Rise