Dogecoin News Today: Dogecoin's First ETF Could Ride the 40 Act Express to Approval

A potential milestone in the U.S. cryptocurrency market is emerging as REX Shares, in collaboration with Osprey Funds, prepares to launch the first Dogecoin (DOGE) exchange-traded fund (ETF) under the Investment Company Act of 1940, commonly referred to as the "40 Act." Bloomberg analyst Eric Balchunas noted that the filing of an effective prospectus with the U.S. Securities and Exchange Commission (SEC) suggests the fund could be approved as early as next week. If successful, the REX-Osprey™ DOGE ETF, listed under the ticker $DOJE, will mark the first U.S. ETF to provide direct exposure to Dogecoin, a token that originated as a meme but has since become a cultural and financial phenomenon [1].

Unlike traditional crypto ETFs that require more cumbersome regulatory filings such as Form S-1 and 19b-4, the 40 Act approach allows for faster market entry by sidestepping some of the delays typically associated with SEC approval. ETF Store President Nate Geraci previously described this strategy as a “regulatory end-around,” enabling issuers to bypass lengthy regulatory scrutiny while still maintaining compliance [2]. REX Shares utilized the same structure to launch its Solana staking ETF earlier this year, indicating a consistent strategy for navigating the regulatory landscape.

The REX-Osprey DOGE ETF is expected to invest at least 80% of its assets in Dogecoin or financial instruments that track the token’s performance, including direct purchases, futures, and swaps. The fund may also allocate portions of its portfolio to U.S. Treasuries or cash equivalents to support daily operations. The filing explicitly acknowledges the inherent risks of investing in Dogecoin, such as rapid price volatility and market uncertainty [3]. Despite these risks, Dogecoin has shown strong performance over the past year, surging 116.67% according to CoinMarketCap. However, the token has since declined from its December 2024 high of $0.4672, currently trading near $0.2129 [1].

The regulatory approach used by REX Shares and Osprey Funds is part of a broader trend as the market for crypto ETFs continues to evolve. Earlier in 2025, 21Shares, Bitwise, and Grayscale submitted traditional Dogecoin ETF proposals that remain pending. The SEC is currently reviewing 92 crypto ETF applications, according to Bloomberg Intelligence analyst James Seyffart. By leveraging the 40 Act structure, REX Shares and Osprey Funds could potentially bypass the regulatory bottlenecks that have slowed the approval of other similar products [2].

In addition to the Dogecoin ETF, REX Shares has also applied for an ETF tracking the TRUMP token, which is managed through an offshore subsidiary. This demonstrates the expanding scope of crypto ETFs, with issuers seeking to offer exposure to a variety of digital assets beyond traditional cryptocurrencies. The broader market is also showing increasing institutional and cultural interest in Dogecoin, particularly with the involvement of high-profile figures like Elon Musk. Musk's attorney, Alex Spiro, recently was reported to be leading a public company focused on Dogecoin investments, potentially signaling growing institutional confidence in the asset [1].

Source:

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

[2] First Dogecoin ETF May Debut in the US Next Week (https://finance.yahoo.com/news/first-dogecoin-etf-may-debut-042810821.html)

[3] Dogecoin may get its first ETF as soon as next week (https://www.mitrade.com/insights/news/live-news/article-3-1099355-20250905)