Wintermute, a leading algorithmic trading company and liquidity provider, has shared a bold prediction with the cryptocurrency community that Dogecoin may get an ETF this year.
prominent companies expressed This perspective is reflected in our 2024 review and 2025 outlook for the crypto market. In particular, this bold prediction highlights the growing institutional interest in meme coins, which have skyrocketed in popularity throughout 2024.
Institutional risk appetite for meme coins increases
According to According to Wintermute's 2024 Market Review, meme coin trading volume surged by a staggering 210% in 2024. Additionally, meme coins' share of the company's OTC trading volume jumped from 7.3% to 16.2%, an impressive increase.
The report highlights that these numbers reflect a growing risk appetite among investors, who are gradually moving up the risk curve in search of higher returns. It also highlights how many financial institutions are looking beyond Bitcoin to diversify and pursue higher yields.
Given the growing risk appetite for meme coins, Wintermute believes it may soon be possible to incorporate this asset class into ETFs.
Predictions for 2025: Dogecoin ETF is here
Wintermute’s latest insights predict that 2025 will see the start of high-profile token launches and groundbreaking exchange listings.
A key highlight of this prediction is that core asset managers are likely to launch memecoin ETFs. Interestingly, Wintermute expects Dogecoin (DOGE) to be the asset in question.
Notably, expectations for the Dogecoin ETF have garnered a lot of attention in the crypto community. In a tweet yesterday, Nate Geraci, president of ETF Store, expressed surprise that no issuers have yet applied for a Dogecoin ETF.
He highlighted that DOGE is the seventh largest digital asset and the most prominent meme coin with institutional appeal.
In the worst case scenario, Geraci pointed out, such ETFs become a marketing expense for the issuer. At best, Elon Musk can help boost its prospects and get approval from the generous SEC.
James McKay, founder of McKay Research, agreed. He added that “DOGE” will remain part of the national conversation for at least the next four years.
Notably, McKay was referring to the upcoming Department of Government Executive (DOGE), which will be headed by Elon Musk under the Trump administration.
McKay argued that this continued attention and federal involvement will be a dual driver, especially given the department's leadership from someone who is also a supporter of cryptocurrencies.
Agreed. Needless to say, DOGE will be in the national conversation through the federal government for at least the next four years. We are also promoting #cipher.
— James McKay (@McKayResearch) January 16, 2025
Dogecoin rival ETP in development
Meanwhile, the team at Floki, the seventh largest meme coin by market capitalization, is preparing to launch an exchange-traded product (ETP) in Europe by early 2025. The FLOKI team plans to list the ETP on the SIX Swiss Exchange in Switzerland.
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