First Meme Coin ETF Could Arrive by 2026: Eric Balchunas

Crypto

First Meme Coin ETF Could Arrive by 2026: Eric Balchunas

While interest in meme coins remains high, regulatory uncertainty still poses a major hurdle. Several firms already filed for Dogecoin, TRUMP, and Bonk ETFs, but recent price declines and lowered prediction market odds means that sentiment is cooling. Meanwhile, major ETF issuers are pressuring the SEC to return to a first-to-file approval model. Across the Atlantic, the UKs FCA recently proposed lifting its ban on crypto ETNs for retail investors.

Meme Coin ETF Momentum Builds

The possibility of the first actively managed meme coin-focused (ETF) launching in the United States is gaining traction, according to Bloomberg ETF analyst Eric Balchunas. In a June 7 , Balchunas said there is a “really good chance” that such a fund could emerge, likely in 2026.

He expects a wave of active to arrive first, which will pave the way for more niche products like a dedicated ETF. This type of fund will differ from traditional passive ETFs by dynamically adjusting its portfolio by holding outperforming tokens while selling off underperformers.

His comments were made in response to a , a Russia-themed meme coin project, which advocated for a performance-based ETF structure tailored to meme coins. The explosive growth in meme coin trading pushed the sectors above $60 billion this year, and could drive ETF issuers to capitalize on the trend.

One major hurdle remains regulatory. Balchunas pointed out that meme coins will likely need to be excluded from the scope of the 1933 Securities Act before being eligible for inclusion in such ETFs. The outcome of for a spot Dogecoin ETF, which was submitted by firms like Grayscale, Bitwise, and 21Shares, could serve as an important signal. Additionally, Osprey Funds and Rex Shares have also submitted applications to the SEC for Dogecoin, Official Trump (), and Bonk (BONK) ETFs earlier this year.

However, market sentiment around meme coins has cooled since its peak in January. Most of the top meme coins experienced big price drops. In fact, is down 75%, has lost 85%, fell almost 60%, and is still 86% below its all-time high.

Prediction markets like also of a Dogecoin ETF being approved this year from 75% to 44%, reflecting the ongoing regulatory uncertainty. While enthusiasm for meme coin ETFs is still high, the road ahead is still full of volatility and unanswered questions.

ETF Issuers Push SEC to Honor First-to-File Rule

A group of major ETF issuers, including VanEck, 21Shares, and Canary Capital, urged the US SEC to return to the “first-to-file” principle when approving ETF applications. In a , the firms criticized the SECs current practice of bundling decisions and prioritizing later applications. They argued that it undermines competition and deters innovation in the financial sector.

Historically, the first-to-file approach was the standard procedure for processing ETF applications, but the SEC shifted away from this model during the wave of .

The letter mentioned that delaying or disregarding early applications discourages pioneering companies from developing new investment products, which could lead to reduced investor choice and inefficiencies in the market. The issuers warned that this approach weakens the SECs own mandate to protect investors and foster capital formation. They also stressed that the global financial leadership of the United States is tightly linked to having that actively encourage entrepreneurship and innovation in financial products, especially in emerging sectors like digital assets.

The appeal to the SEC was made after a sharp increase in digital asset ETF filings, particularly after the election of President . This influx of applications includes altcoin ETFs and , which proves that there is growing institutional interest in broadening exposure to the crypto market.

Despite this momentum, the SEC repeatedly delayed its responses to several high-profile filings. In May, it deadline on Grayscales spot Solana Trust ETF to October and likewise verdicts on proposed staking and .

Bloomberg ETF analyst that delays are typical under the 19b-4 filing process, with the SEC usually taking the full allotted time before issuing a decision. The Commission also raised concerns over the REX-Osprey staked ETFs, and questioned whether their business structure meets the requirements for ETF classification. These developments have stalled launches that many believed were imminent, and raised even more questions about how and when the SEC will greenlight the next wave of crypto investment products.

Crypto ETNs Could Soon Be Open to UK Investors

Meanwhile, the Financial Conduct Authority (FCA) proposed lifting its existing ban on cryptocurrency exchange-traded notes () for retail investors. This will be a huge shift in the countrys approach to digital asset regulation.

on June 6, the FCAs proposal will allow individual consumers to access crypto ETNs—so long as they are listed on a recognized investment exchange within the UK. The regulator stated that it plans to strike a better balance between investor protection and financial freedom. “We want to rebalance our approach to risk,” said David Geale, executive director of payments and digital assets at the FCA. “Lifting the ban would allow people to make the choice on whether such a high-risk investment is right for them, given they could lose all their money.”

People in the the move as a positive development for the UK‘s financial innovation goals. Diego Ballon Ossio, a partner at law firm Clifford Chance, explained that the proposal aligns with the UK’s ambition to be a leader in crypto finance. He added that allowing access to ETNs will not only offer new investment opportunities but also signal that the UK is embracing the digital asset economy.

Kraken‘s UK General Manager, Bivu Das, also applauded the FCA’s shift by stating that it is a key milestone that reflects the maturation of the market. of CryptoUK and HT Digital believes that the change could enhance consumer protections while still enabling exposure to crypto.

This move comes as the FCA is working on updating its crypto regulatory framework. In May, the regulator asked for public input on new stablecoin and custody rules. Meanwhile, Chancellor of the Exchequer Rachel Reeves announced intentions to establish a comprehensive regime that will position the UK as a global crypto hub. The urgency of these regulatory updates is heightened by reports showing the globally in crypto , outpacing even the United States.

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At the same time, the growing use of cryptocurrencies in political donations triggered among lawmakers. During a June 5 parliamentary debate, MP Sarah Olney questioned the transparency of crypto contributions after Reform UK leader Nigel Farage revealed his party had donations in and other cryptocurrencies.