VanEck launches MarketVector “MEMECOIN” index to track BONK, FLOKI, DOGE, PEPE, WIF and SHIB tokens
- VanEck has launched a meme coin index featuring the best and worst-performing meme coins.
- Asset manager highlights a disclaimer that “coins are intended for entertainment purposes.”
- There is not a single cat in this index so far, but it could feature as MEW and POPCAT continue headlining.
While Bitcoin exchange-traded funds (ETFs) track BTC price, $90 billion asset manager VanEck has launched a separate index, christened MEMECOIN, to track the performance of the sector’s best and worst performers.
Also Read: Meme coins lead way as PEPE, BONK hint at possible marketwide uptrend
VanEck forays into meme coin space with a special tracking index
VanEck has ventured into the meme coin arena with an index to track how the top performers, Bonk Inu (BONK), Floki Inu (FLOKI), and Dogecoin (DOGE) perform, against the worst performers Pepe (PEPE), Dogwifhat (WIF), and Shiba Inu (SHIB).
Popular for its HODL ETF, VanEck’s MarketVector meme coin index, MEMECOIN, tracks how the sector’s six bigwigs perform on metrics of market capitalization. This weighted methodology will ensure the selection of holdings is measured on parameters of market value. Respective coins’ weightings will be capped at 30% as a risk diversification strategy.
VanEck MEMECOIN index
DOGE (30.64%) and SHIB (28.01%) lead the weightings of the index. PEPE (14.18%), WIF (13.29%), FLOKI (7.17%), and BONK (6.21%) also featured.
Cognizant that meme coins are a global shelling point for speculative liquidity, the asset manager has issued a disclaimer that “The coins are intended for entertainment purposes.” This underscores the sector’s volatility and ease of price fluctuations based on market sentiment. It is because of this nature that some believe that cat-themed tokens could make their way into the index soon.
Not a single cat coin in the Van Eck meme index.
— Mr.Wzrd✨ (@0xMrWzrd) May 8, 2024
It’s so obvious how undervalued cat coins are.
Guarantee we will see a cat added to the index soon.
My fav cats:
- $sc
- $popcat
Don’t have exposure to these yet, but I like them:
- $michi
- $nub
- $mini
Nevertheless, VanEck’s MEMECOIN index is in itself a show that meme coins are gaining recognition and acceptance in the space. During the Token 2049, Tron founder and Huobi Global advisor Justin Sun discussed meme coins. In a follow up post on X, he said, “Meme coins may seem unconventional, but they highlight the power of community in crypto.”
Meme coins may seem unconventional, but they highlight the power of community in crypto. Building a successful project, meme-based or not, takes dedication.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 1, 2024
Let’s see what the next bull cycle brings! pic.twitter.com/S40tXLhSO3
The sector is steadily transcending into an actual bona fide cryptocurrency niche in its own right. Avalanche Foundation’s plans to start investing in the sector’s tokens in late 2023 reinforced this ascension.
In a December post, the foundation had indicated plans to buy "select Avalanche-based meme coins to create a collection" as part of a bid to broaden its portfolio "to embrace a more complete spectrum of possibilities."
The announcement gave legitimacy to a sector that had never been taken seriously before. VanEck’s move goes a step further in advancing this niche, with boomers expected to start to gain exposure to memecoins just as ETFs brought BTC to Wall Street.
Also Read: Top 3 meme coins Dogecoin, Shiba Inu and Bonk: Bitcoin gains could fuel recovery in DOGE, SHIB, BONK
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
