Dogecoin News Today: Rex Shares' 40 Act shortcut could fast-track Dogecoin ETF approval

Rex Shares is preparing to launch the first Dogecoin exchange-traded fund (ETF) in the U.S. market as early as next week, according to Bloomberg ETF analyst Eric Balchunas. The ETF will be structured under the Investment Company Act of 1940 (the “40 Act”), a regulatory pathway that has previously enabled REX Shares to bring its Solana staking ETF to market. This approach allows for quicker approval compared to the traditional Form S-1 and 19b-4 filings, which are subject to more extensive SEC scrutiny.

Balchunas noted in a recent post on X that Rex Shares had filed an effective prospectus with the U.S. Securities and Exchange Commission (SEC), indicating that the fund is likely to launch soon. The structure of the fund will involve indirect exposure to Dogecoin through derivatives such as futures or swaps, rather than holding the underlying cryptocurrency directly. This method, while less traditional, has been described by ETF Store president Nate Geraci as a “regulatory end-around,” enabling faster market entry without the delays often encountered in standard crypto ETF applications.

Dogecoin, a cryptocurrency initially created as a joke, has maintained a strong cultural presence and has seen a resurgence in investor interest. Over the past year, the token has gained 116.67% in value according to CoinMarketCap. However, it has recently retreated from its 2024 high of $0.4672, trading at approximately $0.2129 at the time of reporting. REX Shares has acknowledged the volatility and unique risks associated with Dogecoin, warning that the market for DOGE is subject to rapid price swings and uncertainties.

Alongside REX Shares, other firms including 21Shares, Bitwise, and Grayscale have also submitted applications for Dogecoin ETFs, though these are under review by the SEC. The agency is currently evaluating more than 90 crypto ETF proposals, with decision deadlines for some applications set for mid-October. Analysts like Balchunas have noted that major altcoins such as Litecoin and XRP have a high probability of approval, potentially setting a precedent for broader acceptance of Dogecoin-related products.

In addition to Dogecoin, REX Shares is pursuing a similar strategy for an ETF linked to the TRUMP token. The structure would involve investing in shares of an offshore company that holds the token, offering investors indirect exposure. This multi-token approach reflects the growing interest in alternative cryptocurrencies and the flexibility of the 40 Act structure in navigating regulatory hurdles.

The potential launch of the Dogecoin ETF is significant given the token’s mainstream appeal and continued media attention. Elon Musk, a well-known advocate of Dogecoin, has repeatedly highlighted the coin’s cultural significance. More recently, Musk’s attorney Alex Spiro was reported to be leading a new public company aiming to raise $200 million to invest in Dogecoin, further underlining the token’s influence beyond the crypto community.

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 set to launch — but it's a different breed ... (https://www.dlnews.com/articles/markets/first-dogecoin-etf-launch-imminent-but-not-same-as-bitcoin/) [3] First Dogecoin ETF May Debut in the US Next Week (https://finance.yahoo.com/news/first-dogecoin-etf-may-debut-042810821.html) [4] First Dogecoin ETF set to launch — but it's a different breed ... (https://finance.yahoo.com/news/first-dogecoin-etf-set-launch-151036858.html)