Memecoin-focused exchange-traded funds (ETFs) could soon appear in the U.S., according to Eric Balchunas, a Bloomberg ETF analyst.
In a post on social media platform X on June 7, Balchunas said there is a “very good chance” that an actively managed memecoin ETF will launch, though it may not happen until 2026. He predicted a wave of actively managed crypto ETFs would come first.
Interest in memecoins has surged, especially among retail investors, pushing the sector’s total market capitalization past $60 billion — exceeding the combined value of Tron and Cardano. This momentum may drive ETF issuers to develop specialized products targeting the memecoin market.
Balchunas made his remarks in response to a post from the team behind “Vladcoin,” a Russia-themed memecoin, suggesting the need for an ETF that actively trades memecoins based on performance. The team proposed that such a fund would hold promising tokens and discard weaker ones — a different approach from traditional ETFs that track a fixed asset.
Dogecoin Could Lead the Way
Balchunas noted that once memecoins are no longer classified as securities under the 1933 Securities Act, they could be included in active ETFs. He added that the outcome of Dogecoin ETF applications will be a key indicator.
Several companies — including Grayscale, Bitwise, 21Shares, Osprey Funds, and Rex Shares — have filed for ETFs tied to Dogecoin, Trump (TRUMP), and Bonk (BONK) this year.
While Balchunas previously estimated a 75% chance the SEC would approve a Dogecoin ETF in 2024, prediction platform Polymarket currently places those odds at just 44%.
Memecoin Market Faces Sharp Correction
After peaking earlier this year, the memecoin market has cooled significantly. Major tokens have dropped sharply: Dogecoin is down 75% from its all-time high, Shiba Inu has fallen 85%, and Pepe is down nearly 60%. TRUMP — once boosted by comments from Eric Trump, son of the former U.S. president — has plummeted 86% since its January 19 peak.
