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Bitcoin ETF Issuer VanEck Launches ‘MEMECOIN’ Index, Includes DOGE, SHIB, and 4 More Meme Coins
May 8, 2024 11:58 am | 1 minute reading |
Investment giant VanEckknown for its exchange-traded funds (ETFs), has delved into the world of meme coins with the launch of Market Vector meme coin index called “MEMECOIN”.
What happened: That index tracks the performance of the six largest meme coins, a category of cryptocurrencies often inspired by internet jokes and cultural references.
The MEMECOIN index is a modified market capitalization-weighted index, meaning holdings are selected based on their market value, with a difference.
Although the top six meme coins are included, the weighting of each coin is limited to 30%. This diversification helps mitigate risk compared to simply holding a single meme coin.
The two most popular meme coins, Dogecoin (CRYPTO: DOGE) It is Shiba Inu (CRYPTO: SHIB), unsurprisingly, occupy the first places in the index, with respective weights of 30.64% and 28.01%.
The remaining four meme coins are:
- Pepe (CRYPTO: PEPE): 14.18%
- Dog hat (CRYPTO: WIF): 13.29%
- Floki (CRYPTO: FLOKI): 7.17%
- Bonk (CRYPTO: BONADO): 6.21%
Read too: Is Ethereum the ‘basket case of this cycle’? 10x Research Points to ETH’s ‘Unique Bull Story’
Interestingly, VanEck includes a clear disclaimer with the MEMECOIN index, stating that these “coins are intended for entertainment purposes.”
This highlights the inherent volatility and speculative nature of meme coins, which are often driven by social media trends and hype rather than traditional investment fundamentals.
What is the next: As the digital asset landscape continues to evolve, interest in meme coins has sparked discussions about their legitimacy and potential as investment vehicles.
This is a sentiment that will be explored further at the Benzinga meeting Future of digital assets event on November 19th.
Read next: Hong Kong Launches First $128 Million Crypto ETF Liquidity Fund
Image: Shutterstock
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