The Bonk community is making waves with a bold plan to launch the first-ever meme coin Exchange Traded Product (ETP). But the big question remains: is the SEC ready to give it the green light?
Bonk Looks to Wall Street
Bonk, a top meme coin built on Solana, has announced plans to enter the world of traditional finance with an ETP. At the Solana Breakpoint event on September 20-21, a developer named Nom announced the news. Bonk is partnering with Osprey Funds, a company that connects crypto with Wall Street.
The ETP would let institutional and retail investors trade Bonk on regular stock exchanges, avoiding the need for crypto wallets. Bonk DAO and its partners will fund the project, but the launch date is still unknown.
If this happens, Bonk will be the first meme coin to break into the ETP market—a major move for a coin category often seen as speculative and unserious.
Is the Bonk ETP a Done Deal?
Bonk’s ambitions are big, but launching an ETP in the U.S. isn’t just about making an announcement. The SEC must approve it, and their track record with crypto-based financial products is cautious, to say the least.
The SEC has often worried about market manipulation and volatility, even with top assets like Bitcoin. Approval will likely depend on three things:
– Market Transparency: The SEC will closely examine Bonk’s markets, especially due to the volatility of meme coins.
– Investor Protection: Can investors truly understand the risks? Meme coins like Bonk swing wildly, which could be a red flag.
– Market Impact: Introducing an ETP for a speculative meme coin may raise concerns about its impact on financial markets.
Osprey Funds, which has experience with crypto ETFs, is handling Bonk’s ETP, but that’s no guarantee. Even Bitcoin ETFs faced delays before the SEC finally approved the first one in 2024.
Flat Price Action—But Is That About to Change?
Despite the big news, Bonk’s price has remained fairly flat. As of September 23, it was trading at $0.0000175, up just 4.3% in the last 24 hours. Over the past week, it gained 8%, but it’s still lagging behind its meme coin peers like Shiba Inu and Pepe, which have seen stronger price action.
For now, Bonk appears to be overshadowed by more established meme coins. Its price is still trading in a narrow range, far below its July and August highs. Whether traders start taking notice as the ETP process unfolds remains to be seen.
Social Media’s Mixed Reactions
As with anything crypto-related, the Bonk ETP news has sparked mixed reactions. Some users are pumped, seeing it as a groundbreaking move that could legitimize meme coins in traditional finance. One X user even called it “insane” (in a good way).
But not everyone agrees, Some say bringing meme coins into traditional finance could hurt crypto’s reputation, making it just another speculative bubble instead of a decentralized alternative.
Others are more skeptical, suggesting Bonk is searching for “alternative exit liquidity” in a crowded meme coin market.
Only time will tell if Bonk’s ETP will bring real value or just add fuel to the speculative fire surrounding meme coins. Keep your eyes on this space things could get interesting.
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