Floki, a dog-themed meme coin, has announced plans to roll out a Floki Exchange-Traded Product after a series of widespread deliberations with its members.
Floki, an innovative cross-chain launched in 2021, has rapidly become a dominant player in the cryptocurrency landscape. Its native meme coin FLOKI ranks among the leading crypto assets globally thanks to Floki’s vibrant community.
NEW DAO PROPOSAL: APPROVE LIQUIDITY PROVISIONING FOR A FLOKI ETPWe've been actively working with a respected Asset Manager and an ETP Issuer to launch a Floki ETP (Exchange-Traded Product) for quite a while now. After months of due diligence and painstaking effort, we've been… pic.twitter.com/90ckRJsUN2
— FLOKI (@RealFlokiInu) December 25, 2024
Widening suite of crypto solutions
The development highlights Floki’s continued commitment to expand its product suite to provide users with access to opportunities in cryptocurrency through high-quality financial instruments they can trust. The crypto project plans to launch the investment product, Floki ETP, in Q1 2025, awaiting authorization from the Floki DAO to give liquidity to the program. DAO members are currently voting on the proposal. The voting exercise is expected to conclude on December 27.
Floki said it took three years to engage with its community about the deliberations. The project currently possesses 16.31 billion Floki tokens in its dedicated wallet address and intends to utilize significant amounts of the coins to give liquidity to the ETP. The project said it would burn good quantities of tokens during the ETP’s inauguration day – to prevent oversupply and manage inflation.
More details about the Floki ETP remain scant because of the confidentiality agreements. However, Floki said any authorized activity will be in line with the DAO’s directives. More detailed communication and specific disclosures are anticipated when the launch date nears. The project also stated that any tokens offered for liquidity intentions will be part of Floki’s possession and can be repossessed in the future if sufficient third-party liquidity is created within the ETP.
Floki ETP to trade on SIX Swiss Exchange
An exchange-traded product is a capital market tool that trades on stock markets. While it is the same as an exchange-traded fund, the two instruments are different in terms of their objectives and structures. Despite their differences, both ETPs and ETFs are designed to smoothly blend with the conventional financial system. This creates a link for traditional investors to efficiently access, purchase, and hold digital assets such as Floki in a clear and regulated approach. ETPs and ETFs also share a common mission of making assets available for retail investors, supervised firms, and institutions.
So far, Dogecoin is the only meme coin that has a functioning ETP currently. Floki seeks to join the bandwagon, to become the second meme coin to accomplish this breakthrough. However, the difference lies in the stock exchanges on which these products operate. The Floki ETP will be launched on Switzerland’s SIX Swiss Exchange while Dogecoin’s ETP is hosted on Sweden’s Spotlight Stock Market.
Expanding user access to cryptocurrency
Exchange-traded products provide an affordable, governed, and efficient approach for institutions and retail investors to access a wide variety of underlying investments, including cryptocurrency.
The initial Bitcoin ETP started operating in 2015 in Sweden. Since then, the crypto ETPs increased from the broader European region to a growing international coverage. While only 17 crypto ETPs were operating at the end of 2020, today 180 of such products are trading on various stock exchanges across the world.
As many traditional financial firms partner with crypto-focused companies in their offerings, the function of ETPs broadens user access to cryptocurrency and also widens crypto’s adoption and linkage in international financial markets.
