Dogecoin News Today: First Dogecoin ETF Breaks New Ground—But Will It Weather the Storm?

DOGE leads market charge, eyes $0.25 target: check forecast

A new Dogecoin (DOGE) exchange-traded fund (ETF) is set to debut on Wall Street, marking a significant milestone for the meme coin. REX Shares, in partnership with Osprey Funds, announced the imminent launch of the REX-Osprey™ DOGE ETF, which will provide investors with exposure to the performance of Dogecoin through traditional financial markets [1]. This ETF will be the first to offer such direct access to DOGE, making it accessible to both retail and institutional investors.

Unlike the spot-based ETFs that have been approved for Bitcoin and Ethereum, the REX-Osprey™ DOGE ETF will operate under the 1940 Act framework, providing indirect exposure to the cryptocurrency through derivatives such as futures and swaps [2]. This structure is similar to the approach used by REX Shares for its Solana staking ETF, launched earlier this year. The fund will allocate approximately 80% of its assets to Dogecoin-related instruments, offering a hedge against the volatility inherent in the cryptocurrency market [2].

The announcement comes amid growing institutional interest in DOGE. CleanCore Solutions, a Nebraska-based manufacturer, recently announced a $175 million private placement, making it the first public company to hold DOGE as its primary treasury reserve [1]. This move has contributed to DOGE’s recent performance, with the coin rising more than 8% over the last month to trade at around $0.216.

Technical indicators also suggest potential for further gains. Popular analyst Ali Martinez highlighted that the TD Sequential indicator, known for identifying market tops, has issued a buy signal for DOGE, indicating that selling pressure may be waning in the short term [1]. This could create favorable conditions for a price rebound.

Meanwhile, the U.S. Securities and Exchange Commission (SEC) is reviewing spot ETF applications for Dogecoin from major issuers such as Grayscale, Bitwise, and 21Shares [2]. These applications are part of a broader wave of over 90 exchange-traded products under consideration, including altcoins like Solana, XRP, and Litecoin. Analysts, including Bloomberg ETF expert Eric Balchunas, suggest that altcoins such as Litecoin and XRP have high chances of approval by mid-October [2]. The success of Bitcoin and Ethereum ETFs, which attracted over $2 billion in inflows during their first three trading days, has raised expectations for similar outcomes in the altcoin space.

The REX-Osprey™ DOGE ETF is expected to launch as early as next week, following the filing of an effective prospectus with the SEC [1]. However, the prospectus also notes that the fund’s performance is tied to the price of DOGE and its derivatives, which remain subject to rapid fluctuations and uncertainty. This aligns with broader warnings about the risks of investing in volatile cryptocurrencies, particularly those with relatively new market structures.

Source: [1] Dogecoin (DOGE) Goes Institutional: REX Shares' ETF Likely to Launch Very Soon (https://cryptopotato.com/dogecoin-doge-goes-institutional-rex-shares-etf-likely-to-launch-very-soon/) [2] First Dogecoin ETF Set to Launch — But It's a Different Breed (https://finance.yahoo.com/news/first-dogecoin-etf-set-launch-151036858.html)