This $90B Asset Manager Has Embraced Six Leading Memecoins

VanEck, an American investment management company with $90 billion worth of assets under management, has expanded its investments into the memecoin market. Through a MarketVector memecoin index called MEMECOIN, the firm opens the way for investors to benefit from six top memecoins by market capitalization ranking.

VanEck Taps Into the Memecoin Market

VanEck is popularly known for its exchange-traded fund (ETF) products. The asset manager was one among 11 companies that received approval for the trading of a spot Bitcoin ETF in the United States. The firm has shown through other ways that it bets heavily on prominent digital currencies like Bitcoin.

VanEck’s MEMECOIN is described as “a modified market cap-weighted index which tracks the performance of the 6 largest meme coins.” This implies that the index will track the performance of the six leading memecoins ranked by their market cap value – Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF), Floki Inu (FLOKI), and Bonk (BONK).

Recognizing the inherent volatilities common to meme tokens, VanEck pegged each token’s weighting at 30%. This way, the index downsizes exposure to a single memecoin. Unsurprisingly, the index’s page reveals that DOGE takes a weighting of 30.77%. SHIB follows with a 28.34% weighting, and PEPE takes 14.51% weighting.

VanEck added a disclaimer that the MEMECOIN index is purely for entertainment purposes. 

How Memecoins are Fairing

At the time of writing, the memecoin market is valued at over $50.3 billion. This is a large chunk of money for a market themed around assets created for fun. Since the rise of DOGE, the first memecoin, thousands of tokens have emerged with several utilities. This has made memecoin become a buzzword among crypto enthusiasts.

The Ethereum blockchain serves as home to multiple meme tokens. However, the Solana network has captured memecoin project creators’ attention as the blockchain housing thousands of meme tokens. Other memecoins have been launched on blockchain networks like Base, Avalanche, and Bitcoin.