Floki DAO Proposes Liquidity Provision for Floki ETP in Europe: A Step Toward Institutional Exposure

Floki DAO, the governing body behind the popular memecoin Floki, has taken a significant step toward mainstream financial acceptance with a new proposal to launch an exchange-traded product (ETP) for Floki in Europe. If approved, this move will position Floki alongside Dogecoin as one of the first memecoins with an exchange-traded product, opening up new avenues for institutional investors to gain exposure to the asset.

A Strategic Move for Institutional Investors

On December 25, Floki DAO members submitted a proposal to allocate a portion of the DAO’s treasury to support the creation of the Floki ETP. The proposal suggests using 16 billion FLOKI tokens—currently valued at approximately $2.8 million—as liquidity for the fund. The vote, which is still ongoing, has seen overwhelming support, with 140 votes in favor and none against at the time of publication. The voting period will conclude on December 27 at 11:00 UTC.

According to the Floki team, they have been working closely with an undisclosed asset manager to bring this product to market. If the vote passes, the Floki ETP is set to launch in early Q1 2025 and will be listed on the SIX Swiss Exchange, the largest stock exchange in Switzerland and the third-largest in Europe.

Expanding Memecoin Accessibility

The proposed ETP is a key step in bridging the gap between traditional finance and the growing world of memecoins. By allowing institutional investors access to a regulated product that tracks the performance of Floki, the initiative could help further legitimize the asset class in the eyes of traditional financial players.

If successful, Floki will join Dogecoin as one of the only memecoins with an ETP. Dogecoin’s ETP was launched by the Toronto-based crypto fund issuer Valour in November 2024, and its success has set a precedent for other memecoins seeking similar institutional recognition.

For Floki, this is an opportunity to expand its reach beyond the retail market, which has been a key driver of its success. With a market cap of $1.7 billion, Floki is currently the 7th largest memecoin, and it has gained an impressive 400% in value since the beginning of the year, despite recent market downturns. At the time of publication, Floki is trading at $0.00017, a slight dip of 6.2% in the past week.

Transparency and Future Plans

While details about the ETP remain under wraps due to non-disclosure agreements, the Floki team assures the community that if the proposal passes, the launch will be in full alignment with the DAO’s mandate. The team has also emphasized that the Floki ETP is on an advanced stage and is scheduled to go live on the SIX Swiss Exchange in early 2025.

A Growing Trend for Memecoins

The proposal for a Floki ETP is indicative of a broader trend in crypto space, where memecoins, often dismissed as speculative or humorous, are gaining increasing traction in the mainstream financial world. Institutional interest in digital assets has been growing steadily, and Floki’s move to launch an ETP represents the continued evolution of the crypto market toward greater legitimacy and integration with traditional finance.

As the market for memecoins continues to mature, products like the Floki ETP could pave the way for more such innovations, offering institutional investors a secure and regulated entry point into this evolving sector.

Looking Ahead

With the potential approval of this proposal, Floki DAO is positioning itself at the forefront of the memecoin movement’s integration into the financial mainstream. If successful, Floki could not only bolster its position as one of the most prominent memecoins but also lead the way in providing institutional investors with a new avenue to explore the growing world of digital assets.

The vote will conclude soon, and if approved, 2025 could mark a pivotal year for Floki and the broader memecoin sector as they continue their march into institutional finance.