Recently, Canary Capital submitted an S-1 filing to the U.S. Securities and Exchange Commission, officially requesting the approval of a PEPE spot ETF. This move suggests that traditional investors may now be able to invest in such assets without going through crypto wallets.

Although this process follows the same approval route as Bitcoin and Ethereum ETFs, indicating a possible relaxation in regulatory stance, the ultimate significance of this development lies more in reshaping market sentiment than in actually increasing liquidity.

At the macroeconomic level, the uncertainty surrounding the Federal Reserve’s interest rate cuts, combined with the positive impact of geopolitical détente on stock markets, have created opportunities for speculative assets like meme coins. Recently, the overall price of meme coins has risen by around 3% to 5%.

Inspired by this application, the price of PEPE saw a short-term increase and trading volume surged. However, historical data shows that such coins often experience rapid declines after news breaks. Although moving averages indicate short-term bullish trends, these trends cannot conceal their inherent vulnerability due to a lack of fundamental support.

According to Monitored by Woofun AI, the price movements of such meme coins are highly dependent on regulatory responses and market sentiment. If the SEC adopts an open attitude, it could trigger another wave of speculation; otherwise, prices might remain stagnant or even plummet in case of a clear rejection.

It is worth noting that as expectations of institutional investment in meme coins increase, the significant asymmetric profit margins that early investors once enjoyed have narrowed significantly. Currently, the market is more characterized by competition among existing investors rather than the creation of new value.

Meanwhile, an Ethereum meme token called 1000x Leverage Trading is attracting attention through a pre-sale campaign. So far, the project has raised $4,726,528.49, with a pre-sale price of $0.0002812. It also includes dynamic staking and community competitions, aiming to replicate the viral growth patterns of DOGE and PEPE in their early stages.

However, such pre-sale projects carry the risk of zero returns and lack regulatory protection. Investors need to be aware that when an S-1 filing becomes the entry barrier, the era of substantial excess returns may have already come to an end.