Key Points
- Memecoin ETFs, driven by demand for actively managed crypto products, could debut by 2026.
- SEC delays are causing frustration, with issuers pushing for the restoration of the “first-to-file” ETF review model.
The growing interest in altcoin ETFs has also sparked a curiosity towards memecoin ETFs, with expectations for their approval set around 2025. A page named Vladcoin suggested the possibility of an ETF that trades memecoins based on performance, holding the promising ones and selling off the weaker ones, effectively creating an actively managed memecoin ETF.
Bloomberg ETF Analyst’s Predictions
Bloomberg ETF analyst Eric Balchunas anticipates a surge of actively managed cryptocurrency ETFs by late 2025, paving the way for more niche offerings. He predicts that a U.S.-listed memecoin-focused ETF could emerge as early as 2026, indicating growing interest in these previously dismissed digital assets. Balchunas opines that memecoin-focused ETFs could be suitable for active management strategies due to the uneven performance of various tokens and the limited financial research surrounding them.
Balchunas also suggested that these ETFs might not hold memecoins directly, but could gain exposure through alternative mechanisms, such as investing in other ETFs registered under the 1940 or 1933 Acts that include memecoin holdings. This approach could allow fund managers to create flexible portfolios within current regulatory boundaries, potentially making such products more viable for mainstream investors.
Regulatory Challenges
Despite the growing interest in niche crypto ETFs, progress remains slow as the SEC continues to delay rulings on several proposals involving Ripple (XRP), Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE). These repeated delays have caused frustration among issuers. ETF providers like VanEck, 21Shares, and Canary Capital have formally requested the SEC to return to a “first-to-file” review model, arguing that it would restore fairness and transparency to the approval process. The future of memecoin and other crypto-focused ETFs remains uncertain, largely dependent on regulatory clarity.
