Floki, a meme-turned-utility project, has been working closely with an unidentified asset manager to develop an exchange-traded product (ETP) that tracks its FLOKI token. The ETP is expected to be available to investors in Europe as early as the new year. This development marks a significant milestone for Floki, making it the only meme token other than dogecoin (DOGE) with an institutional product in Europe.
Collaboration and Progress
The lead developer of Floki, B, revealed that they have been actively working with a respected asset manager and ETP issuer to launch the Floki ETP for quite some time now. After months of due diligence and painstaking effort, the team has been informed that the product is on track to go live in early Q1 2025. This progress was shared with CoinDesk through a Telegram message.
Seeking Approval from the Floki DAO Community
The developers are seeking approval from the Floki DAO community to provide early liquidity to the product when it goes live. A vote has been proposed, which will run for 48 hours and conclude at 11:00 UTC on December 27. The proposal aims to allocate part of the FLOKI required for the ETP from a treasury wallet that holds 16 billion tokens, worth just over $2.8 million at current prices.
These tokens were purchased from the open market over three years after the passage of another community vote. If the proposal is approved, the FLOKI tokens would provide liquidity for the ETP while remaining Floki’s property and could be withdrawn if there is enough third-party liquidity in the ETP.
The Importance of Institutional Products
Institutional products like the Floki ETP offer a regulated way for institutional investors, regulated entities, and retail investors to gain exposure to FLOKI. The lead developer highlighted that when the product goes live, it will become tradable on the SIX Swiss Exchange, the largest stock exchange in Switzerland and the third-largest in Europe.
Confidentiality Agreements
B noted that the team could not disclose further specifics about the ETP due to non-disclosure agreements. This includes information on opening prices, fund structure, and institutional partners involved with the project. These agreements are a standard practice in the development of such products, ensuring the confidentiality of sensitive details.
Current Market Performance
FLOKI has seen a 1.1% increase in value over the past 24 hours, aligning with the broader crypto market’s performance.
The Significance of the Floki ETP
The introduction of an institutional product like the Floki ETP can have several benefits for investors and the project as a whole:
- Increased Exposure: By offering a regulated way to gain exposure to FLOKI, the ETP can attract more investors, potentially increasing its price.
- Improved Liquidity: With the addition of institutional liquidity, the market may become less volatile, making it easier for investors to buy and sell FLOKI tokens.
- Increased Adoption: As a meme token with an institutional product, Floki is likely to gain recognition and credibility within the crypto space.
Potential Impact on the Crypto Market
The introduction of the Floki ETP could have several implications for the crypto market:
- Competition: With more regulated products becoming available, investors may shift their focus towards these options, potentially increasing demand for tokens like FLOKI.
- Regulatory Clarity: The success of the Floki ETP may pave the way for other meme tokens to follow suit, creating a clearer regulatory environment for the crypto industry.
Conclusion
The development of an exchange-traded product (ETP) that tracks the FLOKI token is a significant step forward for the project. If approved, this will be the only meme token other than dogecoin (DOGE) with an institutional product in Europe. The introduction of such a product can have several benefits for investors and the project as a whole.
Future Developments
As the Floki ETP progresses towards its release, the community can expect to see further developments and updates from the team. With the vote running until December 27, it will be interesting to see how the community responds to the proposal.
Sources:
- CoinDesk: "Meme-Turned-Utility Project Floki Seeks Approval for Institutional Product"
This article provides a comprehensive overview of the developments surrounding the Floki ETP and its potential impact on the crypto market.
