ETF store president Nate Geraci believes that memecoins will take “questionable investment wrapped in funds that have been exchanged (ETF)” to a new level.
In an article in the Financial Times, he emphasized the historical trend of memecoins losing value, adding that the Optics of the memecoin ETF offer could harm a firm that Wall Street would like to consider.
On January 21, the sharing of Rex and Osprey filed for seven different ETFs, three of themBased on Memecoins Official Trump (Trump), Dogecoin (Doge), and bonk (Bonk). In addition to BitwiseFiled for a Doge-based trust On January 22, suggesting the creation of an ETF.
Bryan Armor, Director of Research of Passive Strategies in MorningStar, has suggested that those who give can capitalize on a move to the regulatory environment under the President Donald Trump Administration.
He said:
“They take advantage of Trump's campaign promises, the SEC guard change, and the hopes of less scrutiny from the regulators.”
Armor noted that Memecoins lacks established futures markets that support the approved spot bitcoin (Btc) and Ethereum (Eth) ETFs, which create uncertainty around if the US Securities and Exchange Commission (SEC) approves such products.
As a result, Armor believes that those who gave it would “buy a small call option” in potential approval. They have no idea if the SEC will give the green light but want to be among the first batches in case it does.
Bitwise cio Matt Hougan Recently acknowledged regulatory shifts and uttered emotion. He added:
“There has been a major move to the US regulation climate and the attitude to the crypto with the new administration is coming in. We have seen a lot of films from many who have given up with many ideas and I think it will continue.”
Hougan also featured that the SEC remains a “serious agency” with limitations to political influence, as commissioners cannot fully bend the regulator to their mood.
Notably, the Meme Coin filings can be test tests on how to open the new SEC administration will go to the industry. SEC's acting chair Mark Uyeda and the incoming permanent chairman Paul Atkins were both pro-crypto, which caused the industry's optimism to rise.
Meanwhile, the Pro-Crypto Commissioner Mark Uyeda is the acting chair. His first step is to create a task force to help develop a regulation framework for crypto in the US.
A legitimate investment
Despite the uncertainty, Hougan defended the legitimacy of Memecoins as investment ownership, called them “totemic artifact of emerging crypto culture.”
He also compares other niche investments, such as baseball cards or high art, emphasizing that the form of possession does not reduce its potential value.
Moreover, Hougan used Bitwise's Dogecoin-related filing to argue that the liquidity and market size justify its integration with an ETF.
“Dogecoin is the sixth largest crypto asset in the world by market cap and trading over $ 1 billion a day.”
Critics remember that wrapping memecoins in ETFs could lend inappropriate legitimacy to natural -specification, which attracts non -developed investors.
However, Hougan opposed that the SEC operates as a regulator who is not based on Merit and has previously approved ETFs for harmful properties such as junk bonds and niche commodities.
While Hougan emphasized that not all cryptocurrencies are suitable for ETFs, he maintains that each token should be evaluated alone.
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