Nate Geraci is the ETF Store’s president and he believes that memecoins are going to take off. “questionable investments packaged into exchange-traded funds (ETFs)”To a whole new level.
A Financial Times article highlighted that historically, memecoins had lost their value. The author also said that offering memecoin exchange traded funds could have a negative impact on a company that wants to be considered serious by Wall Street.
Rex Shares & Osprey have filed applications for seven ETFs. Based on memecoins Dogecoins (DOGE) and Bonk (BONK) are official versions of Trump (TRUMP), Dogecoins (DOGE), Bitwise Filed for a DOGE based trust On Jan. 22, the suggestion was made to create an ETF.
Bryan Armour of Morningstar’s research department for passive strategies suggested that the Trump Administration could bring about a change in the regulatory climate.
He said:
“They are taking advantage of Trump’s campaign promises, the changing of the guard at the SEC, and the expectation of less scrutiny from regulators.”
Armour stated that the lack of established futures market for Bitcoin (BTC) and Ethereum ETFs that supports the approval spot Bitcoin (ETH) and Ethereum ETFs creates uncertainty as to whether the US Securities and Exchange Commission would approve products such as these.
Armour is of the opinion that such issuers have a tendency to be untrustworthy. “buying a small call option”On the possible approval. The SEC has not yet given the go-ahead, but they want to make sure that their company is among the very first in line if it decides to.
Matt Hougan Bitwise CIO recently acknowledged that the regulatory landscape is changing and expressed the same sentiment. He said:
“There has been a major shift in the regulatory climate in the US and the attitude to crypto with the new administration coming in. We have seen a lot of filings from a lot of issuers with a lot of ideas and I think that will continue.”
Hougan has also stated that the SEC is still a concern. “very serious agency” The Commissioners have a limited influence on the regulator, since they can’t fully bend it to their liking.
Noteworthy is the The filing of meme coins could indicate that issuers are testing whether the SEC will openly welcome the crypto industry. The SEC’s acting chair Mark Uyeda and its incoming permanent chair Paul Atkins are both pro-crypto, which has caused heightened optimism in the industry.
Mark Uyeda, a crypto-friendly commissioner, is currently the interim chair. The first thing he did was create a US crypto regulatory task force.
Investments that are a legitimate purchase
Hougan, despite the uncertainties, defended memecoins’ legitimacy as an investment asset, calling them “totemic artifacts of the emerging crypto culture.”
He also made comparisons with other niche assets, like baseball cards and high art.
Moreover, Hougan used Bitwise’s Dogecoin-related filing to argue that its liquidity and market size justify its inclusion in an ETF.
“Dogecoin is the sixth-largest crypto asset in the world by market cap and trades over $1 billion a day.”
Critics fear that the inclusion of memecoins within ETFs may give an undue level of legitimacy to assets which are inherently speculative, thus attracting investors who do not have enough knowledge.
Hougan, however, countered by saying that the SEC is a regulator who does not operate on merit and had previously approved ETFs to hold risky assets like junk bonds and niche commodity.
Hougan said that while not all cryptos are appropriate for ETFs he still maintained that every token should be evaluated individually.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
