Dogecoin News Today: Regulators Bypassed in Race to Launch First Dogecoin ETF

The first Dogecoin (DOGE) exchange-traded fund (ETF) in the United States could launch as early as next week, according to Bloomberg analyst Eric Balchunas. The ETF, proposed by REX Shares and co-issued with Osprey Funds, is being structured under the Investment Company Act of 1940, the same regulatory route used to launch REX’s Solana staking ETF. This strategy avoids the traditional filing process used by most crypto ETFs, which typically require submissions of Form S-1 and Form 19b-4 with the U.S. Securities and Exchange Commission (SEC). Instead, the 40 Act approach has allowed REX to file an effective prospectus and move forward with its product offering [1].

The proposed REX-Osprey Dogecoin ETF will trade under the ticker symbol DOJE and will gain exposure to DOGE through a Cayman Islands-based subsidiary. This structure is similar to how REX has approached other digital asset products, including an ETF tracking the token associated with former U.S. President Donald Trump (TRUMP). The prospectus, filed with the SEC, highlights that DOGE is a relatively new innovation and carries substantial risks, including volatility and uncertainty in its market [2].

Balchunas noted that the move aligns with a broader trend of ETF providers seeking alternative regulatory pathways to expedite product launches in the crypto space. Other firms, such as 21Shares, Bitwise, and Grayscale, have submitted traditional filings for Dogecoin ETFs but remain in a pending status with the SEC. REX’s approach allows it to bypass some of the delays typically associated with the approval process [1].

Dogecoin, which has garnered significant public attention over the past several years, has seen mixed performance in 2024. The cryptocurrency surged 116.67% over the past year but has since fallen 54% from its 2024 high of $0.4672, trading at $0.2129 at the time of the report. The token’s popularity has been further fueled by prominent endorsements, including from billionaire Elon Musk, who has referred to himself as the “Dogefather” and has repeatedly drawn attention to the asset [2].

The potential launch of the DOJE ETF would mark a significant milestone for the cryptocurrency, offering investors a regulated and accessible avenue to gain exposure to Dogecoin. It would also underscore the increasing institutionalization of digital assets and the growing acceptance of crypto-based investment vehicles in the broader financial ecosystem [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] Analyst: REX-Osprey may launch the first Dogecoin ETF as ... (https://www.mexc.com/news/analyst-rex-osprey-may-launch-the-first-dogecoin-etf-as-early-as-next-week/85600)