In the ever-evolving world of cryptocurrency, meme tokens have captured the imagination of retail investors with their viral appeal and rapid price swings. But what if institutions started diving in? A recent discussion on X (formerly Twitter) by Christopher Perkins, President of CoinFund, sheds light on why Digital Asset Treasuries (DATs) might become a staple for big players—and how single token futures could supercharge this trend, even for meme coins.

Perkins, a veteran in finance with stints at Citi and Lehman Brothers, responded to a clip from the "Bits + Bips" podcast hosted by Laura Shin. In the clip, he argues that DATs—essentially corporate treasuries holding digital assets like Bitcoin or other cryptos—are here to stay, despite current market frothiness. "Is it a frothy space or is it going to be part of market structure for a very long time? Maybe permanent. The answer's yes," Perkins says. He points out that while net asset values (NAVs) have dipped, the real hurdle for institutions is the extreme volatility of these assets.

Why Volatility is a Barrier and How Futures Can Help

Volatility is the wild ride that makes meme tokens exciting for some but terrifying for risk-averse institutions. Think of popular meme coins like Dogecoin or Shiba Inu—their prices can skyrocket on a tweet or plummet overnight. Perkins explains that without robust derivatives, it's tough for big money to enter. "They're so damn volatile," he notes, emphasizing the need for futures contracts to hedge risks.

Here's where it gets interesting for meme token enthusiasts. Perkins highlights a "new wrinkle on the basis trade": buy the DAT (hold the actual asset) and sell the future (a contract to sell at a set price later). This strategy locks in profits from the difference between spot and futures prices. But in the U.S., we don't have single stock futures yet. Applying this to crypto, Perkins references SEC Chairman Paul Atkins' view that "most crypto tokens are commodities." This classification opens the door for single token futures—futures contracts on individual tokens, not just baskets like ETFs.

Imagine futures for specific meme tokens. Institutions could hold meme coins in their treasuries while hedging against drops, making these assets more palatable. "That is going to be very healthy for markets," Perkins asserts.

The Role of Regulation and Market Structure

The conversation also touches on past regulatory hurdles. Perkins mentions that the derivatives market was "suppressed so long under the last administration," but with changes afoot, comprehensive futures are on the horizon. He even mentions ongoing talks with regulators, hinting at imminent progress.

In replies to Perkins' post, Dave Weisberger chimes in on why single stock futures aren't common in the U.S.—high launch costs due to socialized loss funds. Perkins counters with a hot take: perpetual futures (ongoing contracts without expiration) should have similar safeguards to build confidence and avoid issues like Auto-Deleveraging (ADL), where positions are forcibly closed in volatile times.

For meme tokens, which often thrive on hype rather than fundamentals, this could mean stabilization. Futures would allow for better price discovery, reducing manipulation and attracting more serious capital.

What This Means for Meme Token Holders

If you're holding meme tokens or thinking about jumping in, this shift could be huge. Institutions entering via DATs might boost liquidity and legitimacy. No more relying solely on retail frenzy—think sustained growth driven by hedged, long-term positions.

Perkins is even working on an article diving deeper into this basis trade twist, especially since we're still missing many "tail ETFs" (exchange-traded funds for niche assets). Until those arrive, futures could fill the gap.

To catch the full context, check out the original thread on X here. And for more on how regulatory clarity is shaping crypto, follow updates from the SEC.

As meme tokens continue to blur the lines between fun and finance, developments like single token futures could turn them into viable treasury assets. Stay tuned—Meme Insider will keep you updated on how these trends unfold in the blockchain space.