Floki DAO is taking a bold step to bring Floki, the popular memecoin, closer to mainstream institutional investors. The DAO has suggested giving an asset manager a portion of its treasury to introduce an exchange-traded product (ETP) in Europe. This action might allow institutional players to safely and regulated become exposed to Floki.
The proposal describes the continuous work with a reputable ETP issuer and asset manager. The Floki ETP is set to launch in early Q1 2025 following months of due diligence. Although their structures are slightly different, ETPs and ETFs are similar.
They provide an easy way for institutional and retail investors to access assets in a controlled and transparent setting. One of the biggest exchanges in Europe, the SIX Swiss Exchange, will host the Floki ETPs debut.
Given that Dogecoin is the only memecoin with a live ETP at the moment, this is a noteworthy development. The Floki ETPs launch would be a major turning point in the cryptocurrency industry because it might join Dogecoin in the exclusive ETP category.
Liquidity allocation from Floki treasury
Apart from retail and institutional investors, the ETP will serve as a conduit for traditional finance (TradFi) investors to join the memecoin market. The Floki ETP may boost institutional interest in the asset and improve its reputation in the conventional finance industry by providing a regulated platform.
The proposal also requests Floki DAO approval to distribute liquidity for the ETP. Floki’s treasury currently holds over 16 billion tokens, which could guarantee liquidity for the ETP launch. On the day of the launch, the remaining tokens will burn, further lowering the supply.
There is only one day remaining to vote in the community vote that the DAO is using to get approval. The ETP’s specifics are kept private because of non-disclosure agreements (NDAs). However, more information will come out soon after the product launches.
