Meme coins are rallying on reports of high odds for a spot ETH ETF approval by the U.S. Securities and Exchange Commission (SEC).
The US SEC must decide on May 23 and May 24 whether to approve Vaneck and Ark Invest’s spot ETF applications. According to Reuters, the rally stemmed from the SEC requesting an update on the 19b-4 filings before the end of Tuesday, May 21.
The rally was accelerated by Eric Balchunas, a senior Bloomberg ETF analyst who posted the following X:
James Seyffart, Balchunas’s colleague, hurried to correct the post, stating that the reference was for the 19b-4 approvals, while the S-1 approvals may be delayed.
While it may appear as a U-turn, similar were made before the spot Bitcoin ETF approval. There are no indications the US SEC will delay the S-1 approvals or approve the new ETFs.
It is worth noting that not long ago, the expectations for a spot ETH ETF approval were minimal. When ARK Invest removed the ether staking clause from its application in mid-May, it was regarded as a last-ditch effort to have the crypto ETF approved.
However, on Tuesday, Fidelity amended its S-1 filing with the SEC, removing the staking feature from the exchange-traded fund. In other words, Fidelity is following ARK Invest’s footsteps.
source: SEC
Ethereum has rallied around 30% in the past 24 hours, reflecting the anticipation for an approval. Unlike Bitcoin spot ETF approval, Gensler’s X account is unlikely to be compromised this time.
According to Dexscreener, meme coins benefitted the most from the recent rally on Tuesday in the crypto space. This is unsurprising, as meme coins also enjoyed strong gains when BTC rallied following the spot ETF inflows.
source: dexscreener
Best 5 meme coins to watch if ETH ETF is approved
Below are the best meme coins to buy if the spot Ethereum ETF is approved by Thursday. Please note that meme coins are subject to high volatility in the crypto market.
1. $MOG – The Internet culture coin
$MOG is a relatively new meme coin that was launched in 2023. The token launched on Ethereum and Base.
As the token’s contract is on Ethereum, any rally in the underlying blockchain (Ethereum in this case) is often amplified in the token’s price. In this instance, $MOG posted strong gains in the cryptocurrency markets.
Due to its popularity and deep liquidity, MOG is a worthy candidate for the best meme coins to buy if the spot ETF is approved.
2. $KOT – A new cat-themed meme coin
$KOT was recently launched on Solana and belongs to the cat meme coins category. As often seen in new launches, the price rose before reversing lower.
The token has been trending in the past 24 hours and has caught the attention of many meme coins enthusiasts.
Due to its attention, the token may be worth tracking if the US SEC gives the ETF a green light.
3. $OMGCAT – The wild cat of Solana
$OMGCAT is a meme coin that was launched in May 2024. Similar to $MOG, cat-themed meme coins are performing rather well under current market conditions.
Although it is not an ERC-20 token, the smart contract was launched on Solana instead of Ethereum; most of the top blockchain networks may benefit from the ETF approval.
The token is highly liquid and available on decentralized and centralized exchanges such as MEXC.
4. $SEAL – A potential presale gem
The $SEAL meme coin presale has raised $2M so far (it is ongoing). Unlike cats, the project revolves around a seal that chose Solana as its natural habitat.
High-interest presales often show investors estimate the token to explode upon its launch. Approval of the ETF may lead to new bulls joining the crypto meme coins.
VanEck recently released its MEMECOIN index, tracking the top meme coins by market cap, further cementing the meme coins sector.
5. $KAI – A new ERC-20 crypto gem
$KAI is a meme coin featuring a cat on the Ethereum blockchain. The presale only recently started, and around $250k has been raised so far.
The project aims to penetrate the top cat meme coins. A nod from the US SEC to the ether ETF may directly impact the capital raised during the presale stages and the token when launched.
Meme coin projects do not necessarily offer innovation if you are new to crypto. The most profitable meme coins succeeded mostly due to the community and social media buzz.
Will the SEC approve the spot Ethereum ETF?
Despite the raised odds, there is still great uncertainty around the approval. However, a positive signal was received several hours ago when VanEck ETH ETF (ETHV) was listed on the Depository Trust & Clearing Corporation (DTCC) website:
source: DTCC
Although it is inactive until regulatory approval is received, this is a positive signal. All attention will be on whether the US SEC approves or disapproves of the ETF, including blockchain stocks.
Due to past events, always verify the news source as fake news often surfaces around major announcements.
