Americans may soon see the launch of the first active memecoin-focused exchange-traded funds (ETFs), according to Bloomberg ETF analyst Eric Balchunas.
In a post on X dated June 7, Balchunas said there is a “really good chance” that an ETF actively trading memecoins will be available in the near future. He predicted that a wave of active crypto ETFs will come first, followed by a memecoin-only fund likely debuting in 2026.
Memecoin trading has surged this year, particularly among retail investors, pushing its total market capitalization above $60 billion. This growing interest could motivate ETF issuers to create products targeting this rapidly expanding segment of the crypto market.
Balchunas made his remarks in response to a post by the Russia-based memecoin team behind “Vladcoin,” which suggested the need for an ETF that actively trades memecoins, buying and selling based on performance. Such a fund would “hold the promising ones and sell off the weaker ones,” they explained.
Unlike a passive ETF, which tracks a fixed asset or index, an active ETF dynamically adjusts its holdings, aiming to capitalize on changing market conditions.
All eyes on Dogecoin ETF
Balchunas noted that once tokens are no longer classified under the 1933 Securities Act, they become eligible for inclusion in active ETFs. He added that the outcome of the Dogecoin ETF application will provide valuable insights.
This year, several ETF providers—including Grayscale, Bitwise, and 21Shares—have filed for spot Dogecoin ETFs.
In January, Osprey Funds and Rex Shares also submitted filings with the Securities and Exchange Commission for ETFs focused on Dogecoin, Official Trump (TRUMP), and Bonk (BONK).
Polymarket odds fall to 44%
In February, Balchunas estimated a 75% chance that the SEC would approve a spot Dogecoin ETF this year. However, odds on the blockchain prediction platform Polymarket have since dropped to 44%.
So far, the SEC has not approved any memecoin-based ETFs or ETFs for other altcoins like Solana, XRP, or Litecoin, despite numerous crypto ETF applications filed this year.
Memecoins plunged sharply
The memecoin bubble reached its peak in January and has since deflated, with most high-cap tokens dropping over 70% from their all-time highs.
The Official Trump coin lost momentum after Eric Trump announced that the family’s DeFi project, World Liberty Financial, planned to purchase a significant amount of the token on June 6.
TRUMP remains down 86% from its peak of 73% on January 19, while other memecoins have suffered similar declines: Dogecoin is down 75%, Shiba Inu has fallen 85%, and Pepe has dropped nearly 60% from their respective all-time highs.
