Are Meme Coin ETFs On The Horizon?

Key Takeaways

• Meme coin ETFs are on the radar for 2026, with a focus on active trading strategies.

• An active meme coin ETF would dynamically trade various tokens based on performance, unlike traditional ETFs.

• Dogecoin ETF filings are seen as a bellwether for broader meme coin ETF approval.

• Regulatory classification under the 1933 Securities Act remains a major hurdle.

• Meme coin markets have cooled after a January peak, with many assets seeing steep losses.

Active Meme Coin ETFs By 2026?

In a June 7th post on X, Eric Balchunas said there’s a “really good chance” that an actively managed meme coin ETF could be launched within the next couple of years.

He noted:

“First, we’ll get a slew of active crypto ETFs. Then an active meme coin-only fund will likely emerge in 2026.”

Balchunas’ comments came in response to a post from the team behind Vladcoin, a Russia-themed meme coin, which proposed a fund that “actively trades meme coins, buying and selling based on performance.”

Source: X (@runews)

The idea of an ETF that buys and sells meme coins based on performance rather than passively holding a single asset has gained traction among crypto enthusiasts.

How An Active Meme Coin ETF Would Work

What Sets It Apart From Traditional Crypto ETFs?

Unlike traditional ETFs, which passively track the price of a single asset or a fixed index, an active meme coin ETF would operate like a hedge fund. It would aim to optimize returns by buying high-performing tokens and shedding underperformers.

This model appeals to those following fast-moving, highly speculative markets like meme coins, where value can skyrocket, or plummet, in days.

Retail Traders Driving Momentum

Meme coin trading has surged in 2024, with the total market cap of meme coins topping $60 billion. Retail investors have led the charge, turning joke-based tokens like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) into serious market movers.

Regulatory Hurdles Still Remain

The Role Of The 1933 Securities Act

For now, U.S. regulators still view many crypto assets through the lens of the 1933 Securities Act. Balchunas noted that for a meme coin to be included in an ETF, it must first be exempted from this classification.

The SEC has yet to approve any spot ETF tied to a meme coin, or any altcoin, for that matter. But that may change, with ETF issuers already lining up to capitalize on the trend.

Several Applications Already Filed

The clearest path toward a meme coin ETF starts with Dogecoin. So far in 2024, companies like Grayscale, Bitwise, and 21Shares have submitted proposals for a spot Dogecoin ETF.

Other firms like Osprey Funds and Rex Shares are going even further, seeking approval for ETFs linked to Official Trump (TRUMP) and Bonk (BONK) as well.

Market Predictions Mixed

Earlier this year, Balchunas gave a 75% probability that a spot Dogecoin ETF would be approved in 2024.

Source: X (@EricBalchunas)

However, the prediction markets at Polymarket now peg the odds at just 44%, suggesting investor confidence is wavering amid regulatory uncertainty.

FAQ

What is a meme coin ETF?

A meme coin ETF is an exchange-traded fund that invests in a basket of meme coins, cryptocurrencies based on internet culture, humor, or social media trends. An active version would regularly buy and sell meme coins based on their market performance.

When could we see the first meme coin ETF?

Bloomberg analyst Eric Balchunas suggests an active meme coin ETF could launch by 2026, assuming regulatory conditions become favorable.

Why hasn’t the SEC approved a meme coin ETF yet?

The SEC has not yet approved meme coin ETFs due to concerns over volatility, market manipulation, and classification under the Securities Act of 1933.

Are meme coins still popular in 2025?

Meme coins remain part of the crypto conversation, but many have lost over 70–80% of their value since January 2024. Investor interest has shifted toward more sustainable use cases in the interim.

Will Dogecoin get its own ETF?

Possibly. Several firms have applied for a spot Dogecoin ETF, and analysts believe its approval could pave the way for other meme coin ETF offerings.