Surging Memecoin Market Attracts ETF Interest
The memecoin market has seen unprecedented growth in 2025, reaching a market capitalization of over $60 billion. This puts it ahead of major blockchains like Tron and Cardano combined, drawing attention from the financial sector—especially ETF issuers looking to capitalize on retail hype.
There is a “really good chance” that an active memecoin ETF will launch by 2026, according to a leading ETF analyst. While the U.S. has yet to approve any memecoin-based exchange-traded fund, momentum is building behind the scenes.
What Is an Active Memecoin ETF?
An active ETF differs from traditional crypto ETFs in that it actively buys and sells multiple assets based on performance. In the case of memecoins, this would allow fund managers to:
- Hold trending tokens
- Sell underperformers
- Adapt quickly to market sentiment
This strategy contrasts with non-active ETFs, which track a single asset, such as Bitcoin or Ethereum.
Dogecoin ETF Could Be the First Test
Several companies, including Grayscale, 21Shares, and others, have filed for a spot Dogecoin ETF. Analysts believe the outcome of these applications will set a precedent.
“The Dogecoin ETF application will tell us a lot,” an analyst noted. Approval could open the door for broader memecoin ETF strategies.
However, tokens must be exempt from the 1933 Securities Act to be included in an ETF, meaning regulatory clarity is still needed before active memecoin funds can move forward.
SEC Yet to Approve Any Altcoin ETFs
To date, the U.S. SEC has not approved ETFs for altcoins like Solana, XRP, or Litecoin, despite over 70 pending crypto ETF applications.
While the odds for a Dogecoin ETF approval were once as high as 75%, they’ve dropped to 44% on prediction platforms, signaling increasing uncertainty.
Memecoin Prices Under Pressure
Despite the long-term interest in memecoin ETFs, the memecoin sector has seen steep corrections since peaking earlier in the year.
- Dogecoin is down 75%
- Shiba Inu has lost 85%
- Trump token is down 86% from its peak
- Pepe has fallen nearly 60%
This volatility highlights the speculative nature of the memecoin market, but it has not deterred ETF issuers from exploring future opportunities.
Conclusion
With a $60 billion market cap, memecoins are too big to ignore. Although prices have cooled, demand for structured financial products like ETFs remains strong. If regulatory clarity improves, the first active memecoin ETF could emerge by 2026.