Floki Announces Plans to Roll Out a Floki Exchange-Traded Product (ETP)

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.

Dog-themed meme coin Floki has announced plans to launch a Floki Exchange-Traded Product after extensive discussions with its members.

Floki, a cross-chain innovative token launched in 2021, has quickly become a major force in the cryptocurrency landscape. Its native meme coin FLOKI ranks among the top crypto assets globally thanks to Floki’s vibrant community.

NEW DAO PROPOSAL: APPROVE LIQUIDITY PROVISIONING FOR A FLOKI ETP

We've been working closely with a leading Asset Manager and an ETP Issuer for quite some time now to launch a Floki ETP (Exchange-Traded Product) for quite some time now. After months of due diligence, we've been… pic.twitter.com/90ckRJsUN2

Floki is now seeking authorization from the Floki DAO to provide liquidity for the program. The Floki ETP is an investment product that will be launched in Q1 2025, subject to the Floki DAO’s approval. A proposal for the same is currently up for voting by DAO members and is expected to conclude on December 27.

According to Floki, the discussions about this initiative began three years ago and involved the community in the project's development. Currently, the project holds 16.31 billion Floki tokens in its dedicated wallet address and intends to use a large portion of the coins to provide liquidity for the ETP. To prevent oversupply and manage inflation, the project will burn good quantities of tokens on the day of the ETP inauguration.

Further details on the Floki ETP are limited due to confidentiality agreements. However, Floki noted that any activity undertaken will be authorized and carried out in accordance with the directives of the DAO. More granular communication and specific disclosures are expected closer to the launch date. The project also clarified that any tokens offered for liquidity purposes will remain in Floki's possession and can be withdrawn in the future if sufficient third-party liquidity is established within the ETP.

Floki ETP to be listed on SIX Swiss Exchange

An exchange-traded product is a capital market tool that trades on stock markets. It is similar to an exchange-traded fund, but the two instruments differ in their objectives and structures. Despite their differences, both ETPs and ETFs are designed to integrate smoothly with the conventional financial system, creating an avenue for traditional investors to access, purchase, and hold digital assets like Floki in a clear and regulated manner. 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 an ETP currently. Floki is seeking 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 offer an affordable, regulated, and efficient way for institutions and retail investors to gain exposure to a broad range of underlying investments, including cryptocurrency.

The first Bitcoin ETP was launched in لعاب 2015 in Sweden. From there, the growth of crypto ETPs expanded from the broader European region to a growing global footprint. While there were only 17 crypto ETPs operating at the end of 2020, today 180 of such products are trading on various stock exchanges around the world.

As more traditional financial firms integrate their offerings with crypto-focused companies, ETPs serve to expand user access to cryptocurrency and further crypto adoption and integration in global financial markets.