The proposed BONK ETP — probably the primary ever meme coin exchange-traded product — might bridge the hole between crypto traders and Wall Avenue.
Bonk eyes Wall Avenue
Bonk (BONK), a high meme coin constructed on Solana (SOL), has introduced plans to launch an Trade Traded Product in the USA.
A core developer for Bonk, Nom, revealed the information at Solana’s Breakpoint occasion, which befell on Sept. 20-21. The meme coin is partnering with Osprey Funds, a New-York primarily based agency recognized for bringing crypto property into conventional markets.
As with all crypto ETP, the transfer goals to decrease obstacles for conventional and institutional traders to entry crypto. An ETP acts as a illustration of the underlying asset’s value — on this case the asset can be BONK — and may be traded on conventional inventory exchanges, eradicating the particular complexities of crypto wallets and exchanges.
In response to the announcement, the ETP can be “seed funded by Bonk DAO and strategic companions” and made accessible to each retail and institutional traders. Nevertheless, no official launch date has been confirmed but.
If profitable, this could be the primary time a meme coin has entered the ETP house — a vital shift for a crypto asset class typically seen as particularly speculative, in addition to short-lived and simply plain unserious.
Is a Bonk ETF a accomplished deal?
Whereas the Bonk group has introduced plans to launch an ETP within the U.S., it’s essential to grasp that this doesn’t assure that the product can be accredited for buying and selling any time quickly — or in any respect.
The announcement is simply step one in what might be an extended and unsure journey, and regulatory approval from the U.S. Securities and Trade Fee stays a key hurdle.
Up to now, the SEC has been cautious about approving ETPs for even the highest two cryptocurrencies, citing issues about market manipulation, volatility, and lack of investor protections.
For Bonk’s ETP to get accredited, the SEC would seemingly want to judge a number of issues:
- Market transparency: The SEC would wish to make sure that the markets the place Bonk tokens are traded are secure, clear, and proof against manipulation. Meme cash like Bonk are normally thought-about particularly risky and speculative, which might elevate issues.
- Investor safety: The SEC’s major job is to guard traders. It could be whether or not retail and institutional traders have sufficient info to grasp the dangers of investing in an ETP with Bonk because the underlying asset. Since meme cash can swing wildly in value, this might be a sticking level.
- Market affect: The SEC would additionally contemplate whether or not introducing a Bonk ETP might disrupt monetary markets or create unexpected dangers. It could carefully consider how an ETP for a meme coin may behave in another way from one for extra established property like Bitcoin or conventional shares.
Whereas Osprey Funds, which is dealing with the Bonk ETP, has expertise with different crypto monetary merchandise, together with Bitcoin ETFs, that also doesn’t assure success.
Even ETP functions for essentially the most well-known cryptocurrencies have confronted delays and rejections from the SEC. For instance, spot Bitcoin ETFs took years to get accredited, and lots of functions had been rejected earlier than the primary one was launched in January 2024.
Briefly, the SEC might approve the ETP, however they may additionally reject or delay it in the event that they really feel the dangers are too excessive or the product doesn’t meet their requirements.
Bonk’s value motion stays flat
The most important announcement about launching the first-ever meme coin ETP created some buzz over the weekend, although it has not moved BONK’s spot value dramatically.
As of Sept. 23, BONK is buying and selling at $0.0000175, a 4.3% improve previously 24 hours and a extra notable 8% rise over the previous seven days, which seems to be a part of a wider meme cash rally this previous week.
In comparison with its high meme coin friends, nonetheless, BONK has been buying and selling sideways just lately. Shiba Inu (SHIB), as an illustration, has seen a extra strong value improve, rising over 11% within the final seven days to commerce at $0.0000145.
Equally, Pepe (PEPE) has outperformed BONK with positive factors of greater than 13% on the week. In the meantime, Dogwifhat (WIF) has been the largest gainer amongst high meme cash, with an 18% improve over the previous week, now buying and selling at $1.75.
Meme coin traders, recognized for leaping into extremely speculative property, look like extra centered on tokens like SHIB, PEPE, and WIF, which have proven stronger value motion in current days.
Moreover, BONK’s comparatively low profile in comparison with the likes of SHIB or PEPE might imply it’s being overshadowed by extra established meme cash.
For now, BONK value motion stays subdued. The meme coin’s value continues to be buying and selling in a comparatively tight vary, down from current highs in July and August. It stays to be seen if this development will proceed, or if extra merchants begin taking discover because the regulatory submitting course of for the ETP develops.
The announcement that Bonk is launching an ETP has sparked different reactions throughout social media, cut up between pleasure and skepticism.
For some, this transfer alerts a breakthrough, with one X consumer calling it “insane” (in a great way) and highlighting how Bonk might develop into the primary meme coin to enter the ETF house.
Nevertheless, not everybody agrees that the business wants meme coin-based conventional monetary merchandise to maneuver ahead. One other X consumer expressed concern that this may truly undermine crypto’s legitimacy. In response to their perspective, the push to legitimize meme cash for conventional monetary gamers might be extra about inflating the asset’s worth for present holders than offering real worth to the broader crypto business.
The concern is that strikes like this might shift focus away from what crypto was initially, no less than partly, supposed to perform — providing decentralized alternate options to the normal, mediated monetary system — and result in speculative bubbles as a substitute.
Others added a layer of cynicism, suggesting that meme cash like Bonk are merely looking for “various exit liquidity,” particularly as competitors heats up throughout the meme coin house.
The approaching months will reveal whether or not this ETP brings precise worth or just provides gas to the speculative hearth that usually surrounds meme cash.
