Dogecoin Gains Institutional Backing With First-Ever ETP Launch

In a significant development for the cryptocurrency world, 21Shares has announced the launch of the first-ever exchange-traded product (ETP) for Dogecoin ($DOGE) on the SIX Swiss Exchange. This new product is fully backed by the Dogecoin Foundation, marking a pivotal moment in Dogecoin’s evolution from a popular memecoin to a more widely recognized digital asset with institutional backing.

This launch is expected to bring more legitimacy and mainstream appeal to Dogecoin, which was originally created as a meme cryptocurrency. The ETP opens the door for traditional investors and institutions to gain exposure to Dogecoin through a familiar and regulated financial product. The backing by the Dogecoin Foundation signals a growing acceptance of Dogecoin as a viable asset class.

Dogecoin’s rise in status has been fueled by community-driven initiatives, celebrity endorsements, and a strong presence on social media platforms. The introduction of the Dogecoin ETP indicates that Dogecoin is now being taken seriously as a digital asset. The ETP represents a significant step for Dogecoin in terms of possible further adoption by large pools of money.

The launch of the $DOGE ETP within a structure similar to that of exchange-traded products is likely to attract more investors, both retail and institutional. These investors generally prefer the kind of regulatory framework and product structure provided by an ETP. The backing of this product by the Dogecoin Foundation adds a layer of credibility to it.

Bringing the Dogecoin ETP to the market is monumental for the cryptocurrency. It signals a shift in how this digital asset is now being regarded. What used to be seen as a joke or meme is now a legitimate financial product with proper institutional backing. As Dogecoin continues to break out of its parallel channels and as technical indicators continue to suggest it’s going to keep running, it’s safe to say the cryptocurrency is maturing.

Although the key feature of Dogecoin is still its volatility, institutional investors are now entering the world of Dogecoin, as represented by the launch of the $DOGE ETP. With deeper pockets comes, potentially, deeper legitimacy for what was once just an internet meme. The ETP represents a significant step for Dogecoin in terms of possible further adoption by large pools of money.

In the wider cryptocurrency market, the journey of Dogecoin reflects a larger trend that bestows legitimacy on once-speculative or “joke” cryptocurrencies. Increasingly, institutions are making the move into this formerly niche space. The $DOGE ETP, which tracks the price of Dogecoin, is funded with direct investments in the asset. It’s an ETF you might actually understand.

To conclude, Dogecoin has ceased being a mere meme in the world of cryptocurrencies. It is now one such digital currency that is being taken rather seriously even by a number of institutional investors. The implementations of the Dogecoin ETP on Swiss stock exchanges and the very recent technical breakout during which the Dogecoin price more than doubled since Feb. 28, 2021 all attest to the ongoing transformation of Dogecoin from a comical digital dollar to a real digital asset. One that you are just as likely to see again in your investment portfolio as you would the eToro logo.