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

Interest in memecoin ETFs is growing as more investors and market watchers eye their potential launch, and analysts are highlighting why they could be on the horizon.

Bloomberg analyst Eric Balchunas recently expressed optimism about the potential launch of a memecoin exchange-traded fund. His comments came in an X thread, where he responded to an earlier post that suggested a memecoin ETF could be a promising idea.

Balchunas explained that the crypto ETF market is expected to see a wave of actively managed funds towards the end of 2025, after which a memecoin focused era is likely to follow in 2026. 

He went on to add that the memecoin market performance history makes them “ripe for active management.” While often described across the industry as volatile and lacking utility, Balchunas suggested that the unpredictable and under-analyzed nature of the sector could be leveraged for stronger benefits.

On the regulatory side, Balchunas pointed out that the future of memecoin ETFs hinges largely on how the SEC handles the tokens. He noted that the agency’s decision on the pending Dogecoin ETF filings will influence their future, adding that structuring these funds to trade existing crypto ETFs under established rules like the 1933 Act might make the approval process easier.

The recent remarks now put renewed focus on the ongoing wait for the SEC’s response regarding the OG memecoin.

Doge ETF approval stalls 

Over the past months, the Securities and Exchange Commission (SEC) has received several applications for spot exchange-traded funds tied 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 delay its decision, leaving the approval process in limbo. The delay has lowered market expectations for approval this year, with Polymarket data now showing only a 44% chance. This number is down from previous highs above 70%, reflecting waning confidence among investors and market watchers.

Analysts have noted that the controversial nature of memecoins remains one of the biggest hurdles to an ETF approval. However, with evolving regulations and a fast-growing ecosystem worth over $60 billion in market cap, optimism persists that these ETFs could still have a shot.