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Grayscale Launches Dogecoin Trust, Marking Meme Coin's Mainstream Moment

Coin WorldFriday, Jan 31, 2025 10:19 am ET

1min read

Grayscale, a leading digital asset manager, has launched a new trust fund focused on Dogecoin (DOGE), marking a significant step in the cryptocurrency's journey from a meme coin to a tool for global financial inclusion. The new fund, called the Grayscale Dogecoin Trust, aims to provide investors with exposure to the popular cryptocurrency.

Grayscale's decision to launch the Dogecoin Trust comes on the heels of a growing recognition of the cryptocurrency's potential. The asset manager believes that Dogecoin's low transaction costs and rapid transfer speeds make it an optimal vehicle for international remittances, particularly in regions with underdeveloped banking infrastructure. This shift in perception is a testament to Dogecoin's evolution beyond its meme coin origins.

The launch of the Dogecoin Trust also coincides with a surge in interest in meme coins following the election victory of Donald Trump. Since the election, several asset managers have filed applications for meme coin exchange-traded funds (ETFs), including Dogecoin. This trend reflects a broader shift in the cryptocurrency landscape, as investors increasingly recognize the potential of meme coins as viable investment options.

With a market capitalization of nearly $50 billion, Dogecoin is the world's largest meme coin. The creation of the Grayscale Dogecoin Trust and the filing of ETF applications for meme coins suggest that institutional investors are taking a closer look at these cryptocurrencies. The price of Dogecoin has already increased three-fold over the past year, with a particularly large move occurring in the immediate weeks after the November election.

The launch of the Grayscale Dogecoin Trust is a significant development in the cryptocurrency market, as it signals a growing acceptance of meme coins as legitimate investment vehicles. As the cryptocurrency landscape continues to evolve, investors and asset managers alike will be watching closely to see how Dogecoin and other meme coins perform in the coming months and years.

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