Dogecoin ETF Justified, Bitwise CIO Suggests More Meme Coins ETFs Possible

high-quality crypto assets among the top 10-20, most meme coins will likely not qualify for an ETF, due to the fact that these smaller market cap coins would be too expensive to run ETFs on. Hougan noted that “by the time you get to asset like 25 is a tiny fraction of asset number one.”

Looking ahead, Hougan predicted significant inflows into Bitcoin ETFs, anticipating north of $50 billion in 2025. He explained his rationale by stating that current investors will “double down” on their holdings, while new money will come from institutional players. He emphasized that while macro conditions create short-term volatility, the long-term drivers for Bitcoin are specific to the crypto market. Hougan confidently stated, “Bitcoin is going to top $200,000 this year,” attributing this growth to new demand surpassing new supply from both ETFs and corporate players. He viewed the current situation as a buying opportunity.

In a market brimming with potential, Hougan underlined the need for caution and criteria in creating ETFs, emphasizing the importance of a liquid and globally distributed market to minimize insider influence. While meme coin ETFs might be a possibility in the future, they would not be suitable for all assets. Hougan pointed out that assets like Dogecoin have lasting value due to their history and community but are not necessarily fit for institutional or professional investment. The core argument for offering a Dogecoin ETF, as Hougan sees it, lies in providing a secure and cost-effective investment avenue for the existing community, circumventing potentially risky centralized exchanges.

When questioned about the potential approval of a Dogecoin ETF paving the way for other meme coin ETFs like Shiba Inu, Bonk, or Brett, Hougan cautioned against viewing it in black and white terms, highlighting that it’s not an all-or-nothing scenario. While there may be space for larger, higher-quality crypto assets in ETFs, meme coins might not meet the criteria. Hougan recognized the significance of having assets with broad distribution and high liquidity for the creation of ETFs, indicating a restrained approach towards meme coin ETF creation.

In conclusion, Matthew Hougan’s insights shed light on the careful deliberation required in the creation of ETFs for crypto assets. As the market evolves and new opportunities arise, it is essential to consider factors such as liquidity, market distribution, and insider influence to ensure the sustainability and value of these investment instruments.