Crypto ETF filings spark concerns over ‘casino-type’ speculation
A new wave of exchange-traded funds (ETFs) targeting meme coins has stirred debate within financial circles. Three of the largest asset managers in the US are filing to launch ETFs that would track meme-based cryptocurrencies linked to US President Donald Trump and his acolyte Elon Musk. Digital assets like $TRUMP coin, Dogecoin, and Bonk are the short-form cryptocurrencies that are making much noise, yet their speculative nature and lack of solid business fundamentals raise important questions as to their place in traditional financial markets.
Many experts likened meme coins, which are known for being extremely volatile, having no cash flow, and no business model, to gambling. In the words of Bryan Armour, director of passive strategies research at Morningstar, this type of speculative instrument "might make more sense in a casino than in a stock market." But as these coins have gyrated wildly—take the $TRUMP coin, which plunged from $72 to $28—the ETF industry sees an opportunity to capitalize on growing demand for digital assets and offer investors a more structured, regulated way to engage with these volatile tokens.
The president of The ETF Store (a prominent crypto advisory firm), Nate Geraci, warned that if approved, meme coin ETFs would dilute the credibility of other firms aiming to be taken seriously on Wall Street. On the flip side, the total crypto market at the turn of 2025, was c.$2.8tn and only $0.5tn behind the total market capitalisation of the UK equity market, so there is a very plausible argument that it is already large enough to be considered a ‘mainstream’ market.
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