Why memecoin ETFs may be next in line, according to analysts

Interest in memecoin ETFs is gaining traction as investors and market observers increasingly consider their potential launch. Analysts are now highlighting the factors that could bring them to fruition.

Bloomberg analyst Eric Balchunas recently shared his optimistic outlook on the possibility of a memecoin exchange-traded fund. His comments were made in an X thread, responding to an earlier post suggesting the promising potential of such an ETF.

Balchunas explained that the crypto ETF market is anticipated to experience a wave of actively managed funds towards the end of 2025, potentially paving the way for a memecoin-focused era in 2026.

Really good chance this exists at some point. First we’ll get slew of active crypto ETFs (eta Winter 2025). Active meme coin-only likely 2026 tho. The return dispersion (and lack of sell side coverage) ripe for active. Could produce next star manager. Who knows. — Eric Balchunas (@EricBalchunas) June 7, 2025

He further elaborated that the historical performance of the memecoin market makes it "ripe for active management." Despite being often characterized as volatile and lacking inherent utility, Balchunas suggests that the unpredictable and under-analyzed nature of the sector could be harnessed for significant advantages.

On the regulatory front, Balchunas emphasized that the future of memecoin ETFs largely depends on the SEC's approach to these tokens. He noted that the agency's decision regarding the pending Dogecoin ETF filings will be crucial, suggesting that structuring these funds to trade existing crypto ETFs under established rules like the 1933 Act might streamline the approval process.

These recent remarks have renewed focus on the ongoing anticipation of the SEC's response concerning the original memecoin.

Doge ETF Approval Stalls

Over the past months, the Securities and Exchange Commission (SEC) has received several applications for spot exchange-traded funds linked to Dogecoin. Bitwise Asset Management was among the first to file with the commission in January, followed by others including 21Shares, Grayscale, and Rex Shares.

However, the SEC has continued to postpone its decision, leaving the approval process in a state of uncertainty. This delay has tempered market expectations for approval this year, with Polymarket data now indicating only a 44% probability. This figure has decreased from previous highs above 70%, reflecting a decline in confidence among investors and market participants.

Analysts have pointed out that the controversial nature of memecoins remains a significant obstacle to ETF approval. Nevertheless, with evolving regulations and a rapidly growing ecosystem boasting a market capitalization of over $60 billion, optimism remains that these ETFs could still have a viable path forward.