Developers of the Bonk meme coin plan to launch the first market-based exchange product (ETP).
The BONK project team announced the launch of the ETP during the Solana Breakpoint 2024 event in Singapore. An exchange-traded product is a tool that allows investors to acquire assets on the stock exchange without the need to own them directly.
Bonk Takes First Step Towards an ETF
The Bonk team noted that it intends to launch an ETP based on the meme coin by the end of this year with the support of Osprey Funds.
“There are a lot of different people right now who haven’t been exposed to all the incredible things that we are building. There are a lot of people who might love to be exposed to Bonk, but they might not have traditional exchange accounts. They might not have wallets, and we need to figure out how we can bring them onto Solana,” Nom, a core contributor at Bonk, said.
Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?
The developers are confident that creating an ETP based on Bonk will strengthen the asset’s position, and also open up new opportunities for the growth of the meme coin market as a whole. In addition, it can also be the first step towards a Bonk exchange-traded fund.
“This is going to be a first step towards a Bonk ETF,” Nom said.
While some are skeptical about meme coins’ ETFs due to regulatory challenges, others remain hopeful. In July, Lucie, the marketing lead at Shiba Inu, speculated that SHIB ETF is possible due to institutional interest in the meme coin.
Even Matt Hougan, the chief investment officer at Bitwise, is optimistic about meme coins’ ETF. He believes that despite their volatile nature, there is substantial interest in trading meme coins.
“Many ETFs exist as trading tools and are widely used. Why not allow people to gain exposure to meme coins in a secure, familiar ETF package? Broadly speaking, I think that would be great.” Hougan proposed.
Despite the announcement, BONK has mostly remained stable. On Monday, it is up by around 3%, currently trading at $0.000017222.
Its market capitalization is $1.2 billion, and according to data from CoinMarketCap, it is the sixth-largest meme coin.
Read more: Bonk Airdrop Eligibility: Who Can Claim and How?
Bonk is one of the first meme coins in the Solana ecosystem. The project was launched in December 2022, when the broader crypto market was trying to recover from the FTX collapse.
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