Regulators Greenlight First Meme Coin ETF—Rewriting Crypto’s Rules

The United States has approved the first Dogecoin (DOGE) exchange-traded fund (ETF), marking a significant milestone in the evolution of regulated cryptocurrency products. The Rex-Osprey Dogecoin ETF (DOJE), set to launch on September 11, 2025, on the New York Stock Exchange Arca, will be the first U.S. ETF to hold a cryptocurrency with no intrinsic utility or purpose. The product, approved under the 1940 Investment Company Act, differs from traditional ETFs that operate under the 1933 Securities Act, which typically governs funds holding physical commodities or derivatives. This structural distinction enabled a swift approval process, with Rex-Osprey submitting its application to the U.S. Securities and Exchange Commission (SEC) just days before receiving authorization.

The DOJE ETF is designed to track the price of DOGE directly, offering investors exposure to the meme-inspired cryptocurrency through a traditional securities framework. Unlike futures-based ETFs, which only provide indirect exposure, this new fund allows for direct ownership of the underlying asset, subject to the legal and regulatory boundaries established by the SEC. Rex-Osprey, the firm behind the product, previously used a similar legal structure for its Staking Solana Fund (SSK), leveraging a Cayman-based subsidiary to hold the underlying crypto assets. This approach, though potentially subject to double taxation, allows for a faster time-to-market and a first-mover advantage in the rapidly evolving crypto ETF space.

In the days leading up to the ETF’s approval, Dogecoin’s price saw a notable upward shift. According to CoinMarketCap, DOGE rose nearly 13% in the week prior to the announcement. This trend was further amplified by the announcement that CleanCore Solutions, Inc. had acquired 2.854 billion DOGE tokens—valued at approximately $6.8 million—positioning itself as the largest single holder of the cryptocurrency. CleanCore plans to expand this to 10 billion DOGE, representing 5% of the total circulating supply, with support from the Dogecoin Foundation and House of Doge, and in partnership with Bitstamp USA (operated by Robinhood) to secure and manage its holdings.

The DOJE ETF is expected to attract both institutional and retail investors, particularly as it introduces a regulated, liquid, and transparent investment vehicle for Dogecoin. For retail investors, the ETF removes several barriers to entry, including the volatility, security risks, and regulatory uncertainties associated with trading on crypto exchanges. Institutional investors, while facing additional costs such as management fees and the loss of direct utility (e.g., staking or governance), are increasingly drawn to the asset due to the clarity provided by the SEC’s regulatory framework.

Looking ahead, the launch of the DOJE ETF could catalyze broader adoption of Dogecoin, not only as a speculative asset but also as a digital currency with potential for real-world use cases in payments, cross-border transactions, and tokenized projects. With a current market capitalization of $36 billion, Dogecoin remains one of the most recognizable names in the cryptocurrency space, and the ETF’s approval may serve as a catalyst for further institutional investment and market legitimacy.