Wall Street's enthusiasm for meme coin ETFs is cooling fast. Canary Capital filed an application this week for an exchange-traded fund tracking Pepe, a popular meme coin. The token barely moved in response. That muted reaction reflects a broader truth: institutional appetite for speculative digital assets remains thin. Pepe traded around $0.00000356 at the time of writing, up just 0.83% over 24 hours. Trading volume the prior day rose 10% to $432 million, a modest uptick that fell well short of signaling strong market conviction. Dogecoin ETFs Exist — But Barely Matter Dogecoin once seemed like the inevitable frontier for crypto ETFs. Wintermute, a leading crypto market maker, had included a Dogecoin ETF prediction in its outlook, though it later admitted the forecast was meant as a joke. That joke is now reality. Four U.S.-listed Dogecoin ETFs are currently active. Yet their performance tells a different story. Dogecoin ranks 17th among all crypto ETFs tracked by CoinShares. Year-to-date inflows stand at just $13 million, a fraction of what Bitcoin and Ethereum ETFs pull in. James Butterfill, head of research at CoinShares, put it plainly. Building a credible investment case around Dogecoin is ”very hard” for institutional investors, he said. The coin is better suited for retail audiences, not asset managers with fiduciary obligations. Outside of ETFs tied to Bitcoin , Ethereum , Solana, and XRP, all other altcoin ETFs account for just 9% of total assets under management. ”They're just not popular with investors,” Butterfill said. ”It's the big four and not much else.” Regulatory Green Light Has Not Translated to Investor Interest The regulatory environment has shifted in favor of meme coins. SEC Chair Paul Atkins signaled last November that most cryptocurrencies, including meme coins, should not be classified as securities. The SEC reinforced that stance last month by categorizing meme coins as a form of digital collectibles. Generic listing standards established last year now allow exchanges to list commodity-based crypto ETFs without seeking individual approval. The key requirement: the underlying asset must have at least six months of regulated futures trading history. At the time of writing, Dogecoin trades at around $0.09250, up 0.91% in the last 24 hours.
