Dogecoin News Today: "Regulatory Shortcut Paves Fast Track for First Dogecoin ETF"

The potential launch of the first Dogecoin (DOGE) exchange-traded fund (ETF) in the United States has drawn significant attention from investors and analysts. Bloomberg analyst Eric Balchunas has speculated that REX Shares, a major ETF issuer, may launch the fund as early as next week, following a regulatory strategy previously used for its Solana staking ETF. The ETF would be structured under the 40 Act, a regulatory pathway that allows for quicker approval compared to traditional ETF filings, which require Form S-1 and Form 19b-4 submissions to the U.S. Securities and Exchange Commission (SEC). REX has already filed an effective prospectus, warning that DOGE is a “relatively new innovation” and carries risks including rapid price swings and uncertainty [1].

Dogecoin’s price performance over the past year has been mixed. According to CoinMarketCap data, DOGE surged by 116.67% in the year leading up to the filing, but has since fallen 54% from its 2024 high of $0.4672, trading at $0.2129 as of publication [1]. The volatility has not dampened its mainstream appeal, particularly due to the continued involvement of high-profile figures like Elon Musk, who has repeatedly referenced the coin on social media and even referred to himself as the “Dogefather.” Musk’s attorney, Alex Spiro, has also been reported to be leading a new public company aiming to raise $200 million to invest in Dogecoin, further reinforcing the token’s cultural and financial significance [1].

While REX Shares is preparing to launch its Dogecoin ETF, other major players in the ETF space have also submitted applications. On April 10, 21Shares filed for a Dogecoin ETF, joining similar proposals from Bitwise and Grayscale, all of which are currently pending decisions from the SEC [1]. This regulatory uncertainty underscores the broader challenges in launching crypto-based financial products in the U.S., as issuers navigate a complex and evolving legal framework.

REX Shares is also pursuing a similar 40 Act strategy for an ETF that tracks the “OFFICIAL TRUMP” token, which would be purchased through an offshore company holding the asset [1]. This approach highlights the flexibility of the 40 Act as a tool for crypto ETFs seeking quicker regulatory approval, particularly in a market where traditional filings remain stalled. The strategy has been described by industry analysts as a “regulatory end-around,” allowing for more agility in launching new crypto products [1].

The potential launch of a Dogecoin ETF could signal a shift in the broader adoption of crypto assets in institutional finance. While the token is still viewed by many as a meme coin, its increasing presence in mainstream financial discussions—fueled by celebrity endorsements and regulatory developments—suggests it may be gaining legitimacy. However, the inherent volatility and regulatory risks associated with DOGE mean that any ETF offering will need to clearly communicate these challenges to investors.

Source: [1] Dogecoin may see first-ever ETF launch next week: Analyst (https://cointelegraph.com/news/dogecoin-etf-united-states-launch-next-week-analyst)