Expectations are through the roof for a new wave of cryptocurrency Exchange Traded Funds (ETFs). Some analysts are predicting SEC approvals as early as July. It’s possible that these approvals open the door to new types of investment products – even ones that center around memecoins. Industry analysts recommend expecting a tsunami of active crypto ETFs long before any specialized memecoin funds hit the market.

SEC Decision Looms

The Securities and Exchange Commission (SEC) also faces important deadlines, with final decisions on a number of ETF filings due by July 2. Bloomberg analysts aren’t as certain, but they still see a high probability of approval—90% odds, to be exact. Firms such as Grayscale and Bitwise are in a hurry to get their ETFs to market. These investments will monitor an expansive array of cryptos allowing investors to access the wide market.

"ETFs that track broad crypto indexes may be approved by the SEC next month" - James Seyffart via Eric Balchunas' note.

Especially holders of these funds who seek a more democratized as well as varied entry point into the crypto marketplace.

The Rise of Active Crypto ETFs

Eric Balchunas thinks that approving these broad crypto ETFs might usher in a new era. This new age could include actively managed crypto funds.

"we'll get a slew of active crypto ETFs" - Eric Balchunas

“We think the next step in the evolution of crypto investment products will be actively traded ETFs,” Balchunas said. These funds would be much different than passively tracked index funds by actively selecting and managing their cryptocurrency holdings.

Memecoin Mania on the Horizon

Balchunas makes the bold prediction that memecoin ETFs will one day be launched. As for when an active memecoin-only fund would land, he estimates the timing at no sooner than 2026. He drew particular attention to the attractiveness of these basket products, in which investors intently receive exposure to multiple assets.

"It's like you don't know which one is going to be the winner. So you buy a basket [of them all], it's a no-brainer" - Eric Balchunas

We use memecoins in this example, but this approach lets investors get in on the potential upside of several different memecoins. 21Shares President, Duncan Moir, speaking in Paris at the same time, seconded the sentiment, saying that,

"basket products are going to be more interesting" - Duncan Moir

As with all memecoin mania, the market is fueled by meme-inspired assets with extreme volatility. Just look at Dogecoin’s behavior when Elon Musk got involved. Meanwhile, other cryptocurrencies, like SOL, are on pace to reach incredible heights. In fact, some analysts go so far as to forecast that SOL will climb to $300 by 2025!