Meme Coins Surge Amid Optimism for Spot Ethereum ETFs

Meme coins experienced a second consecutive day of growth, fueled by increased optimism that the US Securities and Exchange Commission (SEC) will approve spot Ethereum ETFs (exchange-traded funds) as early as tomorrow.

The meme coin sector overall witnessed a 5.9% surge in market capitalization over the past 24 hours, reaching $61.06 billion. Ethereum-based PEPE led the gains, soaring 26% to an all-time high of $0.0000142 on May 22.

According to a crypto trader on X, PEPE is among the top meme coins to consider during the current market sentiment.

PEPE probably the best MEME Coin play for the #ETH ETF pic.twitter.com/q6QFhR1KlR

— Matthew Hyland (@MatthewHyland_) May 20, 2024

As of 03:15 a.m. EST, PEPE was trading at $0.0000136.

Optimism Over Spot Ethereum ETF Approvals

Optimism regarding the potential approval of spot ETH ETFs escalated following speculation that the SEC may be shifting its stance.

CoinDesk reported that the SEC's division of trading and markets had requested updates to filings from exchanges planning to list and trade ETH ETFs. This move suggests that the regulator may be preparing to approve applications ahead of Thursday, when it is expected to decide on an application for an Ethereum ETF by fund manager VanEck.

Bloomberg ETF analysts increased the odds of approval to 75% on May 21, up from 25% previously. A Polymarket contract put the odds at over 61% on the same day, and those odds have since improved to 69%.

Reports indicate that five prospective spot ETH ETF issuers have already submitted amended filings, including Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, and Franklin. Fidelity removed all references to staking and staking rewards in its amended filing. ETF specialist Eric Balchunas from Bloomberg Intelligence interprets this as a sign that the SEC will not allow the staking of assets within spot ETH ETFs if approved.

Meme Coins Back in the Spotlight

Meme coins tend to gain attention during critical events in the cryptocurrency market. Besides PEPE, other top meme coins on the ETH blockchain, such as Shiba Inu (SHIB) and FLOKI, have also experienced gains.

SHIB is up 1.8% in the last 24 hours, while FLOKI has jumped by over 11%.

Meme coins are proving to be lucrative investments during the recent rally, with some traders already taking profits on PEPE after it reached a new ATH.

BlockTower Capital transferred 202B $PEPE($2.8M) to #Cumberland for sale 2 hours ago after the $PEPE price broke through $0.000014.
BlockTower Capital bought the 202B $PEPE($2.22M) via #Cumberland 6 days ago.
Making $578K in 6 days, with an ROI of 26%. https://t.co/bSxQ2JVkZJ… pic.twitter.com/zyntQBRmre
— Lookonchain (@lookonchain) May 22, 2024

As Ethereum-based meme coins soar, investors are also purchasing the latest presale coins.

Among those favored by some analysts are Doge-themed meme coin Dogeverse, Solana presale Sealana (SEAL), and hybrid meme coin/AI token WienerAI (WAI).

Additional Reading:

• Sealana Presale Blasts Past $2 Million: A New Era For Solana Meme Coins
• Ethereum ETF Decision Takes Center Stage This Week After ETH Legal Boost And More Upbeat Coinbase
• Floki Price Prediction: FLOKI Surges 11%, But Investors Are Flocking To This New Canine-Themed Competitor For Parabolic Gains

Source: https://thebittimes.com/meme-coins-explode-on-ethereum-etf-optimism-as-pepe-hits-ath-tbt89240.html