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Grayscale Bets on Dogecoin's Financial Potential

Coin WorldFriday, Jan 31, 2025 2:04 pm ET

1min read

Grayscale Launches Dogecoin Trust Amid Growing Interest in DOGE as a Financial Tool

Grayscale Investments, a leading digital asset manager, has introduced the Grayscale Dogecoin Trust, a new investment product that provides exposure to Dogecoin (DOGE). This move signals a shift in Grayscale's perspective on the once-dismissed meme coin, as the firm now views DOGE as a potential tool for global financial accessibility.

The newly launched Grayscale Dogecoin Trust operates as a closed-end fund with a 2.5% management fee for investors. This development comes on the heels of political changes in the US, where President Donald Trump established the Department of Government Efficiency (D.O.G.E.) under Elon Musk's leadership.

Grayscale announced the new single-asset crypto investment fund on X (formerly Twitter), stating, "We are proud to announce a new single-asset crypto investment fund, Grayscale Dogecoin Trust DOGE. Dogecoin is helping groups underserved by legacy financial infrastructure to participate in the financial system."

This announcement follows a wave of interest in meme coin ETFs, with several investment firms submitting filings for such products. Former SEC Chairman Gary Gensler had previously resisted such products, but shifting regulatory sentiment has led to a surge in new applications.

Earlier this week, Bitwise officially filed for a Dogecoin ETF, seeking approval under the Securities Act. The application named Coinbase Custody as the fund's custodian but left out key details, including fees and the ticker symbol.

Scott Melker, also known as The Wolf of All Streets, commented on the growing interest in Dogecoin, stating, "DOGE, originally a meme coin, is now viewed as a tool for global financial inclusion, grassroots activism, and a viable payment method due to its low transaction costs and fast transfer speeds."

Prediction markets have reacted strongly to these developments, with Polymarket odds for ETF approval jumping to 56%. This reflects a rising confidence in regulatory acceptance of crypto investment products.

Grayscale continues to expand its crypto offerings, recently becoming the fifth asset manager to file for an XRP ETF. The firm has also launched the Bitcoin Miners ETF (MNRS), which focuses on companies generating revenue through Bitcoin

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