VanEck, an investment management firm based in New York, has unveiled a new fund exclusively focused on meme coins, such as Shiba Inu (SHIB). The fund, called the MEMECOIN Index, was introduced by MarketVector, a subsidiary of VanEck that specializes in digital assets.
The MEMECOIN Index tracks the performance of Shiba Inu and five other meme coins: Dogecoin (DOGE), Dogwifhat (WIF), Bonk (BONK), Pepe (PEPE), and Floki (FLOKI). MarketVector selected these meme coins based on their market capitalization, with plans to review the list on a monthly basis.
To diversify and mitigate risks, MarketVector has capped the weightings of the assets in the index at 30%. Shiba Inu holds a weighting of 28.01%, while Dogecoin’s weighting is 30.64%. The other meme coins in the index, including PEPE, WIF, FLOKI, and BONK, have weightings of 14.18%, 13.29%, 7.17%, and 6.21% respectively.
Since its launch, the MEMECOIN Index has garnered attention from crypto enthusiasts due to its impressive performance. According to Wu Blockchain, the MEMECOIN fund is the best-performing index on MarketVector, delivering a return of 137.96% this year.
Although the MEMECOIN index’s performance may be enticing to investors, MarketVector has clarified that the fund is primarily meant for entertainment purposes. This disclaimer acknowledges the volatile nature of meme coins, which are known for their significant price swings.
The introduction of the MEMECOIN Index has sparked excitement among various meme coin communities, including Shiba Inu. Supporters of Shiba Inu see this as a step towards the creation of a dedicated exchange-traded fund (ETF) for the token. In January, following the launch of multiple Bitcoin ETFs, members of the Shiba Inu community launched an online campaign urging Grayscale Investments to consider applying for a Shiba Inu ETF with the U.S. SEC. Despite gathering over 9,300 signatures, Grayscale has yet to respond to the petition.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not necessarily reflect the opinion of The Crypto Basic. Readers should conduct their own research before making any investment decisions, and The Crypto Basic is not liable for any financial losses that may occur.