TL;DR
- Floki DAO has proposed allocating a portion of its treasury to an asset manager to launch an ETP in Europe, providing institutional investors with regulated access to the memecoin.
- The proposal requests using 16 billion FLOKI tokens, valued at approximately $2.8 million, as liquidity for the future fund, with the voting period concluding on December 27.
- If approved, Floki will join Dogecoin as the second memecoin to have a registered ETP, enhancing its credibility and adoption in the broader crypto market.
Floki DAO, the organization behind the popular memecoin Floki, has recently proposed a significant move to allocate a portion of its treasury to an asset manager. This initiative aims to launch an ETP in Europe, providing institutional investors with regulated access to the memecoin. The proposal, submitted on December 25, is currently being debated by the members of Floki DAO.
Details of the Treasury Allocation
The proposal requests using a portion of the 16 billion FLOKI tokens, valued at approximately $2.8 million at current prices, as liquidity for the future fund. As of the publication, 140 votes have been cast in favor of the proposal, with none opposing it.
The voting period is scheduled to conclude on December 27. If approved, Floki will join Dogecoin as the second memecoin to have a registered ETP, allowing institutional investors to gain exposure to memecoins.
Collaboration with Asset Manager
The Floki team has been working with an undisclosed asset manager to launch the ETP in Europe. According to the proposal’s author, the Floki ETP is on track to go live in early Q1 2025.
The ETP is currently in an advanced stage and will become tradable on the SIX Swiss Exchange, the largest stock exchange in Switzerland and the third-largest in Europe. Due to non-disclosure agreements, further specifics of the ETP cannot be revealed at this time. However, the team assured that if the proposal passes, it will be executed in line with the Floki DAO’s mandate.
Market Reaction and Future Outlook
Despite the proposal, the price of Floki has barely budged, trading down 6.2% in the last week. According to CoinGecko data, Floki is currently the seventh-largest memecoin by total value, commanding a market cap of $1.7 billion. The memecoin is currently trading at $0.00017, and despite recent downward trends, it has posted a 400% gain since the beginning of the year.
If the proposal is approved, Floki will join Dogecoin as the second memecoin to have an exchange-traded product, providing institutional investors with a new avenue to gain exposure to memecoins. This move is expected to enhance the credibility and adoption of Floki in the broader crypto market.