Canary Capital Snubs Dogecoin ETF, Citing Lack of Utility and Unlimited Supply

Canary Capital, a prominent investment firm, has expressed its disinterest in launching a Dogecoin (DOGE) exchange-traded fund (ETF), citing concerns over the cryptocurrency's lack of utility and unlimited supply. This decision comes as several asset managers in the U.S. are exploring the possibility of launching a DOGE ETF, which could potentially trigger growth in the cryptocurrency market.

Steven McClurg, CEO of Canary Capital, has stated that the firm is not interested in joining the bandwagon of launching a spot DOGE ETF. McClurg emphasized the lack of utility for Dogecoin in the broader cryptocurrency space and highlighted the memecoin's unlimited supply as significant factors contributing to the firm's decision. He argued that DOGE, by design, will continue to depreciate as its supply increases, making it an unsuitable candidate for an ETF product.

Interestingly, Canary Capital is among several investment firms competing for other crypto ETF products. The firm has filed to launch ETF products for Solana (SOL), Litecoin, HBAR, and XRP. Unlike DOGE, Solana has utility as it serves to pay for transactions on the Solana network. Recently, SOL was used for trading the popular official Trump memecoin, which boosted the value of the price of SOL and increased activity on the Solana network.

Despite the concerns raised by Canary Capital, experts believe that Dogecoin's loyal fan base, including prominent figures like Elon Musk, could be a driving force behind the interest in a DOGE ETF. Grayscale, for instance, has launched a Dogecoin Trust and filed with regulatory authorities to convert the fund into a spot ETF. The loyal fan base and recent developments in the U.S. space might have prompted some asset managers to explore the possibility of launching a DOGE ETF.