21Shares Endorses Dogecoin, 130,000% Surge in a Decade

Swiss asset manager 21Shares has publicly endorsed Dogecoin, highlighting its transformation from an online meme to a significant player in the cryptocurrency market. The company pointed out that Dogecoin's price has surged by 130,000% over the past decade, demonstrating its resilience and longevity in the volatile crypto space.

Dogecoin, which started as a joke in 2013, has evolved into what 21Shares describes as a "movement" within the crypto community. The cryptocurrency has shown impressive performance, with an annual growth rate of 125% since its inception. This makes it the top performer among the top 25 largest cryptocurrencies by market capitalization. The growth is not limited to its value; user adoption has also seen a significant increase, with the number of wallet addresses rising from 44 million to 84 million in just four years. This rapid adoption indicates that more people are holding and using Dogecoin despite its humorous origins.

21Shares recently submitted an S-1 form to the US Securities and Exchange Commission for a Dogecoin ETF. This filing represents a major milestone for Dogecoin, which began as a prank. If approved, the ETF would allow ordinary investors to gain exposure to Dogecoin without directly buying or owning the cryptocurrency. The new fund would be commodity-based, offering an alternative method for investors to include Dogecoin in their portfolios using traditional investment vehicles.

In addition to the ETF filing, 21Shares has partnered with the House of Doge, the official business entity of the Dogecoin Foundation. This partnership aims to further integrate Dogecoin with conventional financial systems, bringing new legitimacy to the currency. Traditional financial institutions are now viewing Dogecoin as a legitimate asset class rather than just an internet fad. This institutional support may attract more risk-averse investors who previously shunned the meme-coin.

21Shares has also launched an exchange-traded product fully backed by the Dogecoin Foundation. This investment product will be collateralized by real Dogecoin in a 1:1 ratio, meaning each share represents holding real cryptocurrency in cold storage. The firm will charge a management fee of 0.25% for this product, which is competitive compared to other cryptocurrency investment products. This physical backing model provides investors with confidence that their investment is grounded in real-world assets, specifically coins, rather than synthetic derivatives.