In a significant development for the meme coin space, the Floki decentralized autonomous organization (DAO) is considering a proposal to provide early liquidity for an upcoming exchange-traded product (ETP) set to launch in Europe. If approved, this would make FLOKI the second meme token after Dogecoin to back a regulated investment vehicle, potentially opening the doors for more institutional adoption of this novel asset class.
Floki ETP Targets Q1 2025 Launch
According to details shared with CoinDesk by a Floki developer, the project has been working with an unnamed but “respected” European asset manager for several months to develop an ETP tracking the FLOKI token. The product is on track to begin trading on the SIX Swiss Exchange, Switzerland’s principal stock market, early in the first quarter of 2025.
ETPs are an increasingly popular way for traditional investors to gain exposure to cryptocurrencies in a familiar, regulated format. Several crypto ETPs focused on major assets like Bitcoin and Ethereum are already live in Europe. However, ETPs for meme coins like Floki, which often have smaller market caps and more speculative use cases, have been rarer.
DAO to Vote on Treasury Allocation
To provide initial liquidity for market making when the ETP goes live, the Floki developers have floated a proposal to the project’s DAO. The vote, which runs for 48 hours until December 27th, would approve the allocation of FLOKI tokens from a community-controlled treasury wallet.
The wallet currently holds around 16 billion FLOKI, worth over $2.8 million at current prices. These tokens were purchased from the open market using project funds, following a prior community vote. If the new proposal passes, a portion of this FLOKI would be made available to seed the ETP’s liquidity pool.
The allocated tokens would remain Floki’s property and could be withdrawn if sufficient third-party liquidity builds up organically.
Lead developer B explained in a Telegram message
Implications for Meme Coins
The launch of a Floki ETP would mark a significant milestone for meme coins. To date, Dogecoin is the only token in this category to boast an institutional product, with the VanEck Vectors Dogecoin ETN going live on Deutsche Boerse in 2021. An ETP for FLOKI, itself a Dogecoin-inspired token, would further validate meme coins as a legitimate crypto sub-sector worthy of regulated investment vehicles.
More broadly, it points to the ongoing maturation and financialization of the meme coin space. What began with Dogecoin as a comedic homage to Bitcoin has spawned an entire ecosystem of tokens looking to blend meme power with real utility. Floki in particular has focused on building out use cases in NFTs, metaverse gaming, and payment rails.
Not Without Controversy
The push into ETPs has not been without pushback from some in the Floki community. Concerns include:
- Centralization risks from relying on regulated products
- Potential sell pressure if ETP inflows are low
- Treasury allocation deviating from Floki’s original meme ethos
Proponents argue the ETP will be a net benefit by tapping into new pools of capital and raising Floki’s mainstream credibility. The performance of the initial Dogecoin ETN, which quickly gathered over $300 million in assets, suggests there is sizable institutional appetite for meme exposure.
Going the regulated route with an ETP helps position Floki as a pioneer among meme tokens. It shows we’re serious about building lasting value and achieving adoption beyond pure retail speculators.
A Floki representative told CoinDesk
Looking Ahead
As the broader crypto market rebounds from a bruising 2024, meme coins are enjoying a resurgence in interest and activity. The Floki ETP news comes amid a flurry of new exchange listings, metaverse initiatives, and cross-community partnerships for the project.
With the DAO vote approaching its deadline, the Floki community will soon decide whether to take this bold step from the freewheeling meme space into the world of regulated financial instruments. An approval could encourage other major meme coins to pursue similar strategies, while a rejection may signal that the cultural divide between memes and institutions remains too wide to bridge. Either way, the result is sure to be closely watched as a barometer for the future direction and mainstream viability of meme-based cryptocurrencies.
