Since opening its presale in December, the first meme coin index in the space, Meme Index ($MEMEX), has raked in quite a bit of capital funding.
To date, it has raised nearly $3.8 million, even amid the broader market slowdown. Despite the fiasco caused by the Libra ($LIBRA) scam, meme coins are here to stay.
Argentine President Milei’s actions only served as a rude awakening for crypto investors and perhaps the maturity the sector needs.
The Meme Index offers a way for the entire meme coin sector to move forward by allowing investors to invest in a basket of meme coins rather than individual tokens, distributing the risk instead of concentrating it on one asset.
Bitwise Chief Investment Officer Matt Hougan also sees an index-based approach as the way crypto ETFs will move forward and take the industry to even greater heights.
For investors looking to get in early on what could be crypto’s next big leap, $MEMEX can be secured at its current price of $0.0163585 per token for the next 16 hours before a scheduled price increase signals the start of the next funding stage.
Bitcoin ETFs are already rivaling gold ETFs in AUM – and this is just the beginning
The AUM for Bitcoin exchange-traded funds (ETFs) in the U.S. is reportedly around $120 billion, with the largest iShares Bitcoin Trust (IBIT) already competing with major gold-backed ETFs.
Its AUM is creeping up to gold’s $80 billion, reaching $55.2 billion.
Yet, according to Hougan, the market can expect further growth, and he believes there is still room for expansion.
He even suggests that the largest ETP in the U.S. hasn’t launched yet, with projections looking beyond the next 10 years.
The San Francisco-based executive believes that an index-based ETF, such as the Hashdex Nasdaq Crypto Index ETF, which includes Bitcoin and Ethereum ($ETH), will drive the industry forward.
Soon, this could include digital assets like Ripple ($XRP) and Solana ($SOL), both of which have ETFs lined up.
From an investor’s perspective, there will always be peaks and valleys in the price of any given asset, especially with crypto.
However, by spreading the risk across a basket of assets, these peaks and valleys are less frequent.
No other index would better reflect a clear upward trajectory with minimal drawbacks than the chart of the S&P 500.
As the crypto industry matures, with the prices of other assets no longer tied to Bitcoin, an index-based ETF could potentially mimic the same movement as the U.S. benchmark index.
The meme coin sector has massive potential, and the Meme Index makes jumping in safer and more secure
Meme coins, as a subsector of crypto, are still in the early phases of growth.
It’s a market full of opportunities, but unfortunately, many bad actors (particularly those with influence and power) have taken advantage of it.
A prime example of this was the $LIBRA token, whose inner workings before the eventual rug pull are now being revealed.
The market has grown increasingly frustrated by these recurring incidents, with investors seeking meme coins that have the potential to achieve the same status as the established sector leaders like Dogecoin ($DOGE), Shiba Inu ($SHIB), and Pepe ($PEPE).
While many of these types of tokens are available, it is challenging to identify them before they gain a cult-like following that drives their price to the stratosphere.
As mentioned, the Meme Index offers a solution through diversification, which not only spreads the risk across a wide range of assets but also protects investors from the large losses typically associated with scam tokens.
Additionally, with the Meme Index, investors can choose the level of risk they are comfortable with, as the platform offers four different index options.
The Meme Index could be the blueprint for a future meme coin ETF
The crypto industry has just celebrated the first month of what could be a more regulatory-friendly environment for crypto assets over the next four years.
From a time when discussing crypto in traditional finance circles was taboo, the industry has firmly established itself within the world of finance.
Once more cryptocurrencies have their own ETFs, it wouldn’t be surprising to see a $DOGE or $SHIB ETF launching soon to represent the meme coin sector.
After all, meme coins remain a $67 billion market, with legions of holders willing to hold on indefinitely to their favorite meme coins.
If that’s the case, a meme index ETF would make the most sense, as the aforementioned peaks and valleys would be significantly reduced, making the entire ETF much more appealing to investors – particularly those with no real exposure to digital assets.
The Meme Index, with its four distinct indexes: Meme Titan Index, Moonshot Index, Midcap Index, and Meme Frenzy Index, could serve as a solid blueprint for a meme coin ETF.
These indexes are classified based on market capitalization. The Meme Titan Index, which features assets valued at over $1 billion, is the blue-chip meme coin index.
At the other end of the spectrum is the most speculative index, the Meme Frenzy Index, which is ideal for investors seeking the highest possible return if a good percentage of the tokens in that basket perform well.
How to get the $MEMEX while in presale
The Meme Index is exclusively available to $MEMEX holders, and tokens can currently be acquired during the ongoing presale.
Simply go to the Meme Index website, connect your wallet (e.g. Best Wallet), and purchase $MEMEX using USDT, ETH, BNB, or even a bank card.
As governance tokens, $MEMEX holders have the power to influence the tokens included in each index or even propose new indexes altogether.
The Meme Index platform has undergone audits by reputable firms such as Coinsult and SolidProof, ensuring the security of its smart contracts.
Join the Meme Index community on Telegram and X.
The post Bitwise CIO Says ‘Index-Based Approach’ is Key for Crypto ETFs – Could a Meme Index ETF Be Next? appeared first on Cryptonews.
