Key Takeaways
- The first US-based Dogecoin exchange-traded fund, the Rex-Osprey Doge ETF (DOJE), is set to begin trading on Thursday, marking a significant step for regulated crypto products.
- The ETF’s approval under the Investment Company Act of 1940 represents a new regulatory pathway for crypto products, distinct from the Securities Act of 1933 that governed the launch of spot Bitcoin and Ether ETFs.
- Dogecoin’s inclusion in a regulated ETF highlights the growing institutional recognition of memecoins, signaling a broader acceptance of a diverse range of digital assets for speculative investment.
The United States is entering a new era of regulated crypto products with the upcoming debut of the country’s first-ever Dogecoin exchange-traded fund. According to Bloomberg ETF analyst Eric Balchunas, the Rex-Osprey Doge ETF (DOJE) is scheduled to begin trading on Thursday.
How Doge ETF Paved the Way for New ETFs
The approval of the Dogecoin ETF is particularly notable because it was not sanctioned under the Securities Act of 1933, the framework used for the spot Bitcoin and Ether ETFs. Instead, the DOJE fund was approved under the Investment Company Act of 1940. This is a crucial distinction, as the 1940 Act governs investment companies like mutual funds and ETFs, which are designed to hold and manage a portfolio of assets.
While a Bitcoin or Ether ETF holds a token with inherent utility—Bitcoin as a store of value, Ether for powering smart contracts—the Dogecoin ETF is a different beast. As Balchunas noted, Dogecoin has “no utility or purpose” outside of its community-driven, speculative value.
Its decade-long history as a decentralized, meme-inspired currency has built a large following and a market capitalization of $36 billion, making it a viable target for an ETF.
The Rise of Meme ETFs
The Dogecoin ETF’s debut is just the beginning of a broader trend. The SEC is currently reviewing dozens of other proposals for crypto-focused exchange-traded products, including those for assets like Solana and XRP.
This anticipated wave of new ETFs comes after a significant shift in the SEC’s stance on digital assets under the Trump administration, a pivot that was initiated following the overwhelming success of the Bitcoin ETF rollouts.
Final Thoughts
The launch of the first US Dogecoin ETF is more than a novelty; it is a regulatory milestone. It signals that regulators are willing to consider different frameworks for a new wave of crypto products, extending a degree of mainstream legitimacy to assets previously seen as purely speculative. This could pave the way for a flood of new funds and unprecedented institutional participation.
Frequently Asked Questions
What is the key difference between the DOGE ETF and the Bitcoin/Ether ETFs?
The DOGE ETF was approved under the Investment Company Act of 1940, which governs managed funds, whereas the spot Bitcoin and Ether ETFs were approved under the Securities Act of 1933, which governs trust products that directly hold the underlying asset.
Why is the launch of a Dogecoin ETF significant?
The launch is significant because it is the first time a major memecoin, an asset widely regarded as having no utility, has been brought into a regulated US ETF product, showcasing institutional interest in a new class of digital assets.
What does this mean for the future of crypto ETFs?
This approval may open a new regulatory pathway for other crypto tokens, including other memecoins, to launch ETFs, potentially leading to a new wave of regulated crypto products entering the market.
