The $60 Billion Memecoin Market Could Get Its First ETF by 2026

TLDR

Bloomberg analyst Eric Balchunas predicts active memecoin ETFs will launch by 2026, following a wave of active crypto ETFs in late 2025 Current memecoin market cap exceeds $60 billion, surpassing Tron and Cardano combined, driving interest from ETF providers Several firms including Grayscale, Bitwise, and 21Shares have filed for spot Dogecoin ETF applications this year SEC continues delaying approvals for crypto ETFs involving XRP, Solana, Litecoin, and Dogecoin, frustrating issuers Memecoin prices have crashed over 70% from January peaks, with Trump coin down 86% and Dogecoin down 75%

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Bloomberg ETF analyst Eric Balchunas predicts that actively managed memecoin exchange-traded funds could debut by 2026. His forecast comes as the memecoin market has grown to over $60 billion in total capitalization.

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. https://t.co/9CcEc4xmev

— Eric Balchunas (@EricBalchunas) June 7, 2025

The prediction emerged from discussions on social media platform X. A team called Vladcoin suggested creating an ETF that actively trades memecoins based on performance. They proposed holding promising tokens while selling weaker ones.

I think there should be an ETF that actively trades meme coins — buying and selling based on performance. It would hold the promising ones and sell off the weaker ones. Basically, an actively managed meme coin ETF. @stillgray

— Vladcoin (@runews) June 7, 2025

Balchunas responded that there’s a “really good chance” such products will exist eventually. He expects a wave of active crypto ETFs to launch in late 2025 first. The memecoin-focused funds would follow in 2026.

The analyst believes memecoin ETFs are well-suited for active management strategies. The uneven performance across various tokens creates opportunities for skilled managers. Limited financial research on these assets also supports the active approach.

Current Market Conditions

The memecoin sector has experienced explosive growth this year, particularly among retail traders. The total market capitalization now exceeds $60 billion, surpassing established cryptocurrencies like Tron and Cardano. This growth has caught the attention of ETF providers looking to tap into emerging crypto sectors.

However, the memecoin bubble that peaked in January has since deflated. Most higher capitalization tokens have tumbled more than 70% from their peak prices. Dogecoin has dropped 75% from its all-time high, while Shiba Inu has lost 85%.

The official Trump coin remains down 86% from its January 19 peak of $73. Even after Eric Trump announced that the family’s DeFi project World Liberty Financial planned to acquire the token on June 6, it failed to maintain momentum. Pepe has slumped almost 60% from its all-time high.

TRUMP Price

Several ETF issuers have already filed applications for memecoin-focused products. Grayscale, Bitwise, and 21Shares have submitted spot Dogecoin ETF proposals this year. Osprey Funds and Rex Shares filed for Dogecoin, Official Trump, and Bonk ETFs in January.

Regulatory Hurdles Remain

The Securities and Exchange Commission has not approved any memecoin-based ETFs or other altcoin ETFs. Applications for Solana, XRP, and Litecoin ETFs remain pending alongside the Dogecoin proposals. The regulator continues to delay rulings on these various cryptocurrency ETF applications.

These repeated deferrals have frustrated ETF providers. VanEck, 21Shares, and Canary Capital have formally requested the SEC return to a “first-to-file” review model. They argue this approach would restore fairness and transparency to the approval process.

Balchunas previously estimated a 75% chance that the SEC would approve a spot Dogecoin ETF this year. However, odds on prediction platform Polymarket have since fallen to 44%. The Dogecoin ETF application will provide important insights into regulatory thinking, according to Balchunas.

For actively managed memecoin ETFs, regulatory structure offers potential workarounds. These funds might gain exposure through alternative mechanisms rather than holding memecoins directly. They could invest in other ETFs registered under the 1940 or 1933 Acts that include memecoin holdings.

This approach would allow fund managers to craft flexible portfolios while staying within current regulatory boundaries. It could make such products more viable for mainstream investors seeking memecoin exposure.

The path forward for memecoin and other crypto-focused ETFs remains uncertain until regulatory clarity emerges.

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