Meme Coin ETFs Could Launch by 2026, Driven by Investor Excitement and Active Trading

Investors may be able to gain exposure to meme coins via exchange-traded funds (ETFs) by 2026, driven by investor excitement and active trading, a Bloomberg analyst has predicted.

What Happened: As the crypto industry awaits the approval of Bitcoin and Ethereum ETFs, speculation is already brewing about even more niche crypto products that could hit the market.

After crypto trader Vladcoin sparked the idea of an ETF that buys and sells meme coins based on their performance, Bloomberg senior ETF analyst Eric Balchunas said there is a “really good chance” that an actively managed meme coin ETF could exist in the future. However, he noted that it would probably take some time for this to happen.

“Really good chance this exists at some point. First, we’ll get a slew of active crypto ETFs (eta Winter 2025). Active meme coin-only likely 2026, though. The return dispersion (and lack of sell-side coverage) ripe for active. Could produce next star manager. Who knows,” Balchunas said in a tweet.

He expects to see many active crypto ETFs launch by winter 2025, but a meme coin-only active ETF is more likely to come around 2026.

Meanwhile, polygon-based prediction market Polymarket predicts that Dogecoin ETF will see approval by the end of 2025 with a probability of 44%.

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No Meme Coin ETFs Yet: While there are no meme coin-only ETFs available yet, the concept isn’t entirely new. Several major asset managers, including BlackRock Inc (NYSE:BLK), Fidelity, and VanEck, have already launched or filed for spot Bitcoin and Ethereum ETFs.

These funds have become very popular, with some accumulating billions of dollars in assets within a few months. Some smaller players have also filed for “crypto basket” ETFs that invest in a mix of digital assets.

However, no one has filed for a meme coin-only ETF yet.

Why Meme Coins: Balchunas feels that meme coins could be ideal candidates for active management. Meme coins, such as Dogecoin, Shiba Inu, and Pepe, are known for their large price swings and hype-driven movements.

Many of these coins lack traditional research or clear fundamentals, making it difficult to determine which ones will survive in the long term. This aspect, in particular, could be suitable for an active manager to decide.

Balchunas also hinted that if this type of ETF comes to life, it could lead to the creation of the next investing star.