TL;DR
- Bloomberg analyst Eric Balchunas believes the first ETF focused exclusively on memecoins like Dogecoin, BONK, or TRUMP could be approved by 2026.
- Despite recent price drops, major ETF issuers are pressuring the SEC to streamline the approval process.
- Meanwhile, the UK is considering loosening retail access to crypto investment products, signaling a broader global shift toward greater acceptance of digital finance.
The push to launch exchange-traded funds (ETFs) that track the performance of memecoins continues to gain traction, even though enthusiasm for these assets has waned compared to earlier this year. Eric Balchunas, a well-known ETF analyst at Bloomberg, stated that there is a solid chance of seeing these products in the U.S. market by 2026. His analysis is based on the expectation that actively managed crypto-focused funds will be approved first, paving the way for more niche products like memecoin ETFs.
These ETFs wouldn’t simply replicate an index; instead, they would actively adjust their portfolios by holding on to better-performing tokens and selling off underperforming ones. There are already pending applications for funds based on Dogecoin, BONK, and TRUMP, submitted by firms such as 21Shares, Osprey Funds, and Grayscale. However, benchmark prices have dropped sharply: Dogecoin has lost nearly 75% from its peak, Shiba Inu is down 85%, and TRUMP remains 86% below its highest level. Pepe has also fallen over 60% from its top, reflecting a cooling of speculative appetite. Even so, trading volumes remain significant, and the sector still holds a strong market capitalization, exceeding $50 billion.
Regulatory Pressure and Demand for Fairness in the Process
ETF issuers are not only facing a volatile market, but also delays from the SEC. Companies like VanEck and Canary Capital have called for a return to the “first to file, first to be reviewed” model, arguing that the current system—which groups applications and gives priority to select firms—stifles innovation and competition.
Meanwhile, in the United Kingdom, the Financial Conduct Authority (FCA) has proposed lifting the ban on crypto ETN products for retail investors, provided they are listed on authorized exchanges. This has been seen as a major step toward expanding access to digital assets for a broader audience. Kraken and other industry players welcomed the move as a clear signal of regulatory openness and integration.
While doubts persist regarding approval timelines, institutional interest in digital assets remains strong. The creation of themed ETFs around memecoins could represent a new gateway for investors who see these tokens not just as a passing trend, but as an entry point into emerging dynamics of the financial market.
