Regulators are expected to approve a Dogecoin ETF soon after Bitcoin and Ethereum hit US public markets, according to BitMEX co-founder Arthur Hayes. In a recent interview with Real Vision CEO Raoul Pal, the two investors discussed their favorite meme coin and crypto picks for this cycle, as well as the top risks facing the industry. Hayes believes that meme coins still have significant potential this cycle, especially as the Federal Reserve and US Treasury continue to print more money. He expressed that meme coins are easy to understand for newcomers to crypto, making them an appealing investment option.
In a recent blog post, Hayes advocated for going long on Bitcoin and other “shitcoins” following interest rate cuts by the Bank of Canada and the European Central Bank. Low interest-rate environments historically benefit stocks and Bitcoin, leading to increased capital flowing into the more volatile memecoin market. Both Hayes and Pal disclosed that they have invested in dog-themed coins like Dogecoin, BONK, and dogwifhat. Hayes predicted that Dogecoin would eventually receive ETF approval in the US by the end of the current bull market cycle due to its high market cap and popularity on platforms like Robinhood.
Pal shared his enthusiasm for Solana, which he believes is a promising investment opportunity, while Hayes suggested that Aptos could potentially surpass Solana in the layer 1 game in the next few years. Both investors advised against investing in Cardano, considering it a remnant of the last cycle, with Pal also cautioning against Ripple (XRP). They expressed concerns about the dominance of large centralized venues in the crypto market, such as Derebit’s 90% market share in the options market. Hayes also warned about the potential risks associated with Coinbase and banks that control the Bitcoin backing the world’s largest Bitcoin ETFs, suggesting that a hack targeting these institutions could result in significant losses for customers.
As the crypto market continues to evolve and attract more mainstream interest, investors like Arthur Hayes and Raoul Pal are closely monitoring trends and opportunities for growth. With the increasing acceptance of meme coins like Dogecoin and the potential approval of a Dogecoin ETF in the US, the market is expected to become even more dynamic in the coming months. While some cryptocurrencies like Solana show promise for significant returns, investors should remain cautious of potential risks associated with centralized venues and specific altcoins. By staying informed and diversifying their portfolios, investors can navigate the evolving landscape of the crypto market and capitalize on opportunities for growth and profitability.
Discussion about this post