Grayscale Launches Dogecoin Trust, Legitimizing Memecoin

Grayscale, a prominent crypto asset management firm, has launched the Grayscale Dogecoin Trust, marking a significant shift in the perception of the once-dismissed memecoin. According to CoinDesk, Rayhaneh Sharif-Askary, Grayscale's head of product and research, emphasized that Dogecoin is no longer just an internet joke. She cited its low fees and fast transaction speeds, which are ideal for international remittances, especially in underbanked regions, as reasons for its growing appeal.

Since Donald Trump's surprise return to the White House, crypto markets, including Dogecoin, have seen explosive growth. The former president's pro-crypto moves, such as naming a group the Department of Government Efficiency (D.O.G.E.), have sparked a crypto-friendly era. Following this shift, fund managers rushed to file DOGE ETF applications, something deemed impossible during Gary Gensler's stricter tenure at the U.S. Securities and Exchange Commission.

Grayscale's trust may further legitimize Dogecoin among institutional investors. With a market cap nearing $50 billion, the token has tripled in value over the past year, fueled by crypto optimism after Trump's November win. The trust is now open for daily subscriptions by eligible individual and institutional accredited investors, working like Grayscale's other single-asset investment trusts and being entirely invested in the Dogecoin token.

Grayscale believes Dogecoin's accessibility and low transaction costs make it a viable tool for financial inclusion. The firm's Head of Product & Research, Rayhaneh Sharif-Askary, noted that as a faster, cheaper, and more scalable version of Bitcoin, Dogecoin helps underserved groups engage with the financial system. The trust offers investors exposure to an asset that is positioned to help fulfill Bitcoin's originally intended use case and its egalitarian ethos.

Grayscale has taken a similar approach with other cryptocurrency investment products, such as its Ripple (XRP) trust. In September 2024, the company launched the Grayscale XRP Trust, providing accredited investors with exposure to XRP, the token used on the XRP Ledger. The XRP Trust has been available for daily subscriptions to qualified investors and operates similarly to Grayscale's other single-asset investment trusts. On January 30, Grayscale announced its filings for a spot XRP exchange