- Approval for a Dogecoin ETF seems inevitable following Bitcoin and Ethereum entering the US public markets, says BitMEX co-founder Arthur Hayes.
- During a recent interview with Real Vision CEO Raoul Pal, the two investors discussed their top meme coin picks and the significant risks facing the crypto industry.
- “It’s the oldest meme coin, it’s on Robinhood,” commented Hayes on the potential ETF approval for Dogecoin.
Arthur Hayes predicts that after Bitcoin and Ethereum receive their respective ETFs, Dogecoin ETF approval is just around the corner.
The Future of Memecoins: Insights from Arthur Hayes
Arthur Hayes sees significant potential for meme coins in the current market cycle, suggesting things could get even more “insane” as the Federal Reserve and US Treasury continue their monetary expansion policies.
“For beginners in crypto, it’s the simplest thing to grasp,” Hayes pointed out. “You don’t need to dive deep into blockchain, AI, or cryptography.”
In a recent blog post, Hayes emphasized that the time was ripe to invest in Bitcoin and subsequently meme coins, due to consecutive interest rate cuts by central banks like the Bank of Canada and the European Central Bank. Historically, these low-interest environments are favorable for both stocks and Bitcoin, often leading capital to flow into riskier assets like meme coins.
Both Hayes and Pal have invested in dog-themed coins including Dogecoin (DOGE), BONK, and dogwifhat (WIF).
The investors agreed that Dogecoin would likely receive ETF approval in the U.S. by the end of this bull market cycle.
“It’s the oldest meme coin, it’s on Robinhood,” reiterated Hayes. “Considering Tradfi’s potential foray into crypto, an ETF for a high market cap asset like Dogecoin seems logical.”
Over the past year, Dogecoin has surged 136%. Since its launch in December, WIF has skyrocketed by nearly 1600%.
Key Trends to Monitor This Market Cycle
Regarding other cryptocurrencies, Pal mentioned he is “ninety percent” into Solana, dubbing it the “right bet to have.” In contrast, Hayes forecasted that Aptos—currently the 27th by market cap—could surpass Solana in the “layer 1 game” within the next 1 to 3 years.
When it comes to what to steer clear of, both men dismissed Cardano as a “narrative of the last cycle.” Pal also expressed skepticism about Ripple (XRP).
They also voiced concerns about significant risks that could impact the crypto market during this cycle.
Both identified large centralized entities as major points of vulnerability. Pal raised alarms over Deribit’s 90% market share in the options market. Meanwhile, Hayes pointed out that Coinbase and various banks—responsible for the Bitcoin backing the world’s largest Bitcoin ETFs—might pose financial risks to customers.
“If I were to hack crypto, I’d target one of these U.S. custodians—one of these banks,” Hayes noted. “They’ve never had the responsibility of custodizing an asset without the fallback of calling the Treasury or Fed for a bailout.”
Conclusion
The landscape for meme coins and cryptocurrencies continues to evolve, with potential ETF approvals and major risks both on the horizon. As the market cycles on, watching these trends and the actions of major centralized entities will be crucial for investors looking to navigate this complex terrain.
