Dogecoin News Today: Retail Investors Get a Dogecoin ETF—But It’s a Derivative Dance

The first Dogecoin exchange-traded fund (ETF) in U.S. markets is expected to launch as early as next week, according to Bloomberg ETF analyst Eric Balchunas. The product, offered by REX Shares in collaboration with Osprey Funds under the ticker symbol DOJE, will be the first U.S.-listed fund to provide investors with exposure to the performance of Dogecoin (DOGE), a popular meme-based cryptocurrency. The ETF is structured under the “40 Act” framework, which allows for indirect exposure to the underlying asset via derivatives such as futures and swaps, rather than holding the cryptocurrency directly. This approach mirrors the regulatory pathway used for REX’s recent Solana (SOL) staking ETF and has been described by industry experts as a “regulatory end-around” to navigate the SEC’s ongoing scrutiny of spot crypto ETFs.

The prospectus for DOJE indicates that the fund will allocate approximately 80% of its assets to Dogecoin-related instruments, including futures and swap agreements, which derive their value from the price of DOGE. REX Shares has also filed for other crypto-themed 40 Act ETFs, including ones potentially linked to Donald Trump and XRP, though the Dogecoin offering is expected to debut first due to the already approved prospectus. The SEC filing highlights the substantial risks associated with the fund, noting that DOGE is a relatively new innovation and subject to rapid price swings and market uncertainty.

Dogecoin has experienced notable volatility in recent months, having surged 116.67% over the past year but declining by nearly 54% from its 2024 peak of $0.4672 to a current price of $0.2129. Nevertheless, recent developments may signal a potential rebound. CleanCore Solutions, a Nebraska-based manufacturer, has positioned itself as the first public company to hold Dogecoin as its primary treasury reserve following a $175 million private placement backed by over 80 institutional and crypto-native investors. Analyst Ali Martinez has also observed a buy signal from the TD Sequential indicator, suggesting that short-term selling pressure may be easing.

The launch of the DOJE ETF is being viewed through the lens of the broader ETF landscape. The SEC is currently reviewing over 90 crypto-related ETF applications, including spot ETF proposals for Dogecoin by firms such as Grayscale, Bitwise, and 21Shares. These applications are among a larger group targeting altcoins like Solana, XRP, and Litecoin, with some expected to receive approval as early as mid-October. Analysts anticipate that the approval of these products could replicate the success seen with Bitcoin and Ethereum ETFs, which saw $2 billion in inflows during their first three trading days and now hold over $107 billion in assets.

The debut of the first Dogecoin ETF could trigger significant retail and institutional interest, potentially sparking a new wave of speculative trading. Given the unique structure of the DOJE fund and the broader regulatory environment, investors are advised to closely monitor the performance and volatility associated with Dogecoin, as well as the potential for regulatory shifts in the U.S. crypto market.

Source: [1] Dogecoin (DOGE) Goes Institutional: REX Shares' ETF (https://cryptopotato.com/dogecoin-doge-goes-institutional-rex-shares-etf-likely-to-launch-very-soon/) [2] First Dogecoin ETF set to launch — but it's a different breed (https://finance.yahoo.com/news/first-dogecoin-etf-set-launch-151036858.html) [3] Dogecoin may see first-ever ETF launch next week: Analyst (https://cointelegraph.com/news/dogecoin-etf-united-states-launch-next-week-analyst)