Pepe ETF Plans Test Wall Street Demand as Meme Coin Interest Stalls
Canary Capital pushed the meme coin narrative back into focus this week after filing for an exchange-traded fund tied to Pepe’s price. However, the market’s lukewarm reaction is highlighting a deeper issue: institutional investors may still be unconvinced by assets driven largely by online hype.
Despite the announcement, Pepe saw only modest movement. The token traded around $0.00000359, posting a slight daily gain of roughly 0.6%, while trading volume rose by about 10% to reach $432 million. The subdued response stands in contrast to the explosive rallies meme coins have historically enjoyed during peak retail-driven cycles.
Not long ago, meme coins were major revenue drivers for crypto trading firms, with tokens like Dogecoin capturing widespread attention. But industry sentiment has since shifted. Even firms that once embraced the trend have acknowledged that expectations around meme coin ETFs—particularly early predictions of a Dogecoin fund—were never entirely serious.
Today, several Dogecoin-focused ETFs are listed in the U.S., yet institutional traction remains limited. Compared to dominant crypto investment products tied to Bitcoin, Ethereum, Solana, and XRP, meme coin funds continue to lag significantly. Data shows that outside of these major assets, altcoin ETFs account for just a small fraction of total assets under management, underscoring their limited appeal.
The core challenge lies in justification. Institutional investors often require a clear thesis when allocating capital, and meme coins—largely fueled by community sentiment rather than fundamental utility—make that difficult. As a result, demand has remained concentrated around the largest and most established cryptocurrencies.
Regulatory developments have added an interesting twist. The U.S. Securities and Exchange Commission has signaled that many cryptocurrencies, including meme coins, may not qualify as securities. Recent guidance has even framed them as “digital collectibles,” potentially lowering barriers for ETF listings.
Additionally, updated ETF listing standards now allow exchanges to introduce certain crypto-based funds without needing individual approvals, provided requirements like a six-month history of regulated futures trading are met. In Pepe’s case, futures activity on platforms such as Kraken could help satisfy part of that criteria.
Canary Capital isn’t stopping with Pepe. The firm has also filed for ETFs tied to other meme assets, including Mog, Pudgy Penguins’ PENGU token, and a coin linked to Donald Trump. Still, skepticism remains, particularly for tokens lacking robust derivatives markets—often a key requirement for ETF approval.
Across the broader ETF industry, this wave of filings reflects an experimental mindset. Some issuers are rapidly submitting proposals across a wide range of assets, hoping that at least a few gain regulatory approval and investor traction. Others have gone even further, pursuing leveraged meme coin ETFs aimed at high-risk, high-reward traders.
For now, though, the message from markets is clear: while meme coin ETFs may generate headlines, institutional capital continues to gravitate toward crypto’s “big four,” leaving speculative tokens like Pepe on the sidelines.