Memecoin ETF May Launch by 2026 as Bloomberg Analyst Sees Market Shift

Highlights:

• A Bloomberg analyst sees a memecoin ETF launching by 2026.
• The SEC has delayed crypto ETF decisions to late 2025.
• Active crypto ETFs may pave the way for niche offerings.

Bloomberg’s senior ETF analyst Eric Balchunas predicts that the U.S. could have a memecoin ETF in 2026. According to him, the next batch of actively managed crypto ETFs, coming in late 2025, could set things in motion. The funds would concentrate on volatile digital assets that the community contributes to, especially Dogecoin, Shiba Inu, and Pepe.

He explained that memecoins provide great opportunities for active management since their performance is often unpredictable. Memecoins have a very different pattern than Bitcoin or Ethereum, as they don’t stick to financial rules. With this approach, fund managers can make trades following trends rather than considering long-term worth. He suggests that a memecoin ETF might not hold the tokens directly. Instead, it would only qualify to trade within ETFs that follow the 1933 or 1940 Acts. The approach follows regulations from the SEC and also gives us flexibility in managing portfolios.

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

Regulatory Trends Could Determine Speed of Approval

There have been many delays from the SEC regarding several crypto ETFs, including ones that included Bitcoin, Ethereum, XRP, and Dogecoin. Some of these delays stretch up to October 2025. Although the process is taking longer than expected, Balchunas confidently believes that changing regulations could open the door for memecoin products in 2026.

Dogecoin is likely to become a major case of reference. Analysts believe that how the SEC responds to Dogecoin’s ETF application will decide how it treats similar funds. Bloomberg’s Balchunas pointed out that Dogecoin’s approval in a 1933 Act filing could have an impact on future products.

Dave Nadig and other industry experts have shared their views on how the current system makes it hard for certain products to be approved. Currently, memecoins would be considered grantor trusts, meaning they cannot be actively managed. Regardless, with Paul Atkins leading the SEC, there could be a new approach. Atkins has voiced support for encouraging more people to use digital assets through approved financial offerings.

Agree it'll happen eventually. Big interim hiccup is that you can't actively manage a grantor trust, which is where Memecoins would have to go right now, as they've been deemed "collectibles." But wait a week and it'll probably all change.

— Dave Nadig (@DaveNadig) June 7, 2025

In Balchunas’ opinion, this change opens up new opportunities for creative investment funds. He pointed out that both relaxed regulations and higher demand from investors make a memecoin ETF more possible.

Active Strategy to Match Memecoin Volatility

Memecoins are different from most cryptocurrencies because they rely on hype from the internet and the community. Their prices frequently change quickly without any warning. As a result, most memecoins do not benefit from using passive investment strategies.

In the opinion of Balchunas, having active management is not only a good idea—it’s a necessity. An ETF for memecoins would probably need to make quick adjustments, purchasing top performers while getting rid of the losing ones. This way of trading fits well with the unpredictable and speculative features of memecoins.

No fund manager has yet to file for an ETF that is devoted to memecoins. However, the achievement of Bitcoin and Ethereum ETFs means that investors are eager to invest in these assets. BlackRock and Fidelity are among the asset managers that have attracted billions with their crypto products. Balchunas believes that the next trend will be specialized ETFs that aim at memecoins. According to Polymarket, there is a 44% likelihood that Dogecoin ETF will be approved by the end of 2025. Consequently, this matches Balchunas’s expectation that a memecoin ETF might appear in 2026.