Arthur Hayes predicts that Dogecoin will get an ETF this cycle

According to BitMEX co-founder Arthur Hayes, it is inevitable that regulators will approve the Dogecoin ETF once both Bitcoin and Ethereum hit the US public markets.

During a Sunday interview with Real Vision CEO Raul Pal, the two investors reviewed their favorite meme coin and crypto picks this cycle, as well as the major risks currently looming over the industry.

Why Memecoins continues to win: Arthur Hayes

According to Hayes, memcoins still have a lot of runway this cycle, with the Federal Reserve and US Treasury printing more and more money, and the market is expected to get “even crazier.”

“For someone just getting into crypto right now, it's literally the easiest thing to understand,” Hayes said. “I don't need to understand blockchain, and AI, and crypto, and cryptography.

In a blog post last week, Hayes argued that the time had come to respond to back-to-back interest rate cuts by both the Bank of Canada and the European Central Bank. Historically, low interest rate environments have been good for stocks and Bitcoin, causing capital to flow into the risky and volatile memecoin market.

Both Hayes and Pal said they locked up parts of their portfolios in dog-themed coins, including Dogecoin (DOGE), BONK, and dogwifhat (WIF).

The investors agree that Dogecoin will receive ETF authorization in the United States at the end of the current bull market cycle.

“It's the oldest memecoin, it's on Robinhood,” Hayes said. “Tradfi is a great market cap if you're thinking about getting into crypto and putting an ETF on anything you can.”

Dogecoin is currently up 136% over the past year. Since its launch in December, WIF has reached the moon by about 1600%.

The trends of observing this cycle

As for other cryptocurrencies, Pal said he is “ninety percent” to Solana, calling it “the right bet to get.” In contrast, Hayes says he predicts Aptos — the 27th-ranked crypto by market cap — will topple Solana in the “Layer 1 game” in the next 1 to 3 years.

What to avoid, both men agreed that Cardano is “the narrative of the last cycle”, while Pal took a stab at Ripple (XRP).

The guys were equally worried about what could be a big risk to crypto in this cycle.

Both highlighted large centralized positions that control huge segments of the crypto market. Pall expressed concern about Deadbit's 90% market dominance in the options market, while Hayes argued that Coinbase and various banks — which control bitcoin and back the world's largest Bitcoin ETF — could lose customers a lot of money.

“If I'm not hacking crypto, I'm going after one of these American custodians — I'm going after one of these banks,” Hayes said. “If they lose property, they should never have to call the Treasury or the Fed and hold on to property that they can't get any other security for.