Dogecoin News Today: "Regulators Sidestep Hurdles as First Dogecoin ETF Nears Approval"

The first Dogecoin exchange-traded fund (ETF) may soon launch in the United States, according to Bloomberg analyst Eric Balchunas. The fund, known as DOJE, is being developed by REX Shares and Osprey Funds and is expected to provide investors with exposure to the performance of Dogecoin, a cryptocurrency known for its meme-based origins and widespread media attention [1]. This ETF is not a traditional spot ETF but a 40-Act ETF, which offers indirect exposure to Dogecoin through derivatives, futures, or swaps. The fund is expected to allocate at least 80% of its assets to Dogecoin or instruments tied to its performance [2].

REX Shares is following a regulatory route that differs from the traditional path for crypto ETFs. Instead of filing the conventional Form S-1 and Form 19b-4 with the U.S. Securities and Exchange Commission (SEC), the firm is leveraging the 40-Act, a regulatory framework it previously used to launch its Solana staking ETF [3]. This approach allows the firm to bypass certain requirements that have delayed the approval of other spot Dogecoin ETF proposals. While the SEC continues to evaluate spot ETF applications from other issuers such as Bitwise, Grayscale, and 21Shares, REX’s 40-Act structure may enable the DOJE to launch first [2].

The potential launch of DOJE comes at a time when Dogecoin has already experienced significant price volatility. Over the past year, the token has surged by 116.67%, but it has since retreated 54% from its 2024 high of $0.4672, trading at $0.2129 at the time of publication [1]. Despite these fluctuations, Dogecoin has maintained a strong presence in the cryptocurrency market, partly due to its association with high-profile figures like Elon Musk and its frequent appearances in mainstream media [1]. The REX-Osprey Dogecoin ETF is expected to mirror these trends through its exposure to the token and its derivatives.

The broader market is also abuzz with activity surrounding altcoins, with several firms submitting filings for Dogecoin-based ETFs. These include applications from 21Shares, Bitwise, and Grayscale, which are still under review by the SEC [2]. The regulatory environment remains fluid, and while these filings are part of a larger batch of over 90 applications, analysts like Balchunas anticipate higher approval chances for major altcoins such as Litecoin and XRP in the coming months [2]. The approval of spot Dogecoin ETFs could catalyze further price appreciation, mirroring the effect seen with Bitcoin and Ethereum ETFs following their approvals [2].

REX-Osprey’s DOGE ETF also includes a Cayman-based subsidiary, the REX-Osprey DOGE (Cayman) Portfolio S.P., which will hold certain positions. The parent ETF’s investment in this subsidiary is capped at 25% of its total assets to maintain its status as a regulated investment company (RIC) [3]. This structure, similar to that of futures ETFs, allows REX to navigate regulatory complexities while offering investors exposure to the altcoin market [3]. The firm has previously used this model to launch the Solana + Staking ETF (ticker SSK), demonstrating its effectiveness in the crypto ETF space.

The launch of the first Dogecoin ETF could mark a significant milestone in the broader altcoin season, potentially increasing institutional interest and liquidity in the Dogecoin market. However, the product comes with inherent risks, as REX itself warned in its prospectus that Dogecoin is a “relatively new innovation” and is subject to “rapid price swings and uncertainty” [1]. Despite these challenges, the market is showing signs of readiness for a new phase of crypto-based investment vehicles, with the DOJE ETF poised to lead the charge.

Source:

[1] Dogecoin ETF United States Launch Next Week: Analyst (https://cointelegraph.com/news/dogecoin-etf-united-states-launch-next-week-analyst)

[2] First Dogecoin ETF Launch Imminent but Not Same as Bitcoin (https://www.dlnews.com/articles/markets/first-dogecoin-etf-launch-imminent-but-not-same-as-bitcoin/)

[3] First Dogecoin ETF 'Coming Soon': REX-Osprey Teases (https://www.mitrade.com/insights/news/live-news/article-3-1097444-20250905)