Memecoins
Bitcoin ETF Issuer VanEck Launches “MEMECOIN” Index, Featuring DOGE, SHIB, and 4 Other Meme Coins
May 8, 2024 11:58 a.m. | 1 minute read |
Investment giant VanEckknown for its exchange-traded funds (ETFs), has entered the world of meme coins with the launch of MarketVector meme parts index called “MEMECOIN”.
What happened: This hint 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 that securities are selected based on their market value, with a twist.
Although the first six meme coins are included, the weighting of each coin is capped at 30%. This diversification helps mitigate risk compared to simply holding a single coin.
The two most popular meme coins, Dogecoin (CRYPTO: DOGE) And Shiba Inu (CRYPTO: SHIB), unsurprisingly occupy the first places in the index, with respective weightings of 30.64% and 28.01%.
The four remaining pieces are:
- Pepe (CRYPTO: PEPE): 14.18%
- dog hat (CRYPTO: Wireless): 13.29%
- Floki (CRYPTO: FLOKI): 7.17%
- Bonk (CRYPTO: BONK): 6.21%
Read also: Is Ethereum “the basket case of this cycle”? 10x Research Highlights ETH’s “Only 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.
And after: As the digital asset landscape continues to evolve, interest in meme coins has sparked discussions about their legitimacy and potential as an investment vehicle.
It’s a sentiment that will be explored further during Benzinga’s talk. The future of digital assets event on November 19.
Read next: Hong Kong Launches First $128 Million Crypto ETF Liquidity Fund
Image: Shutterstock
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