Regulators Greenlight First Meme-Driven ETF, Raising New Questions

The United States is on the brink of launching its first Dogecoin (DOGE) exchange-traded fund (ETF), signaling a potential turning point for the meme-inspired cryptocurrency and the broader crypto investment landscape. The DOJE ETF, developed by REX Shares in partnership with Osprey Funds, is expected to begin trading this week following regulatory approval from the U.S. Securities and Exchange Commission (SEC) . This marks the first instance of a U.S. ETF being designed to track an asset with no inherent utility or technical purpose, according to Bloomberg ETF analyst Eric Balchunas .

The ETF’s approval comes after REX Shares utilized the Investment Company Act of 1940 framework, which streamlines the approval process compared to traditional methods like the S-1 filing for funds or the 19b-4 process for ETFs . This approach has already been used successfully for the launch of the first Solana-linked ETF by the same firm this year. Unlike previous applications, including one submitted by Bitwise which remains pending, the REX-Osprey filing was deemed effective, expediting the path to approval .

Dogecoin’s price has surged in anticipation of the ETF’s debut, rising approximately 13% in the last week and currently trading at $0.2393 with a market capitalization of over $36 billion . The cryptocurrency, which originated in 2013 as a lighthearted nod to the “Doge” internet meme, has grown into one of the most recognizable names in the crypto space, supported by its active community and high-profile endorsements from figures like Elon Musk . The approval of the DOJE ETF provides a regulated avenue for institutional and retail investors to gain exposure to Dogecoin without directly holding the asset, thereby expanding access to traditional U.S. securities markets .

The launch of the Dogecoin ETF follows the approval of Bitcoin and Ethereum spot ETFs in 2024, indicating a broader trend of regulatory acceptance for crypto-based investment products. The DOJE ETF will be managed by Foreside Fund Service LLC and is expected to trade under the ticker $DOJE . This development reflects growing institutional interest in cryptocurrencies with strong cultural traction, despite their volatility and lack of inherent utility .

Critically, the ETF prospectus highlights the significant risks associated with Dogecoin, including its high volatility and unpredictable market behavior . The product is expected to appeal primarily to investors seeking speculative exposure to a crypto asset with a large social media footprint rather than a foundational financial or technological role . As the first memecoin ETF in the U.S., its success or failure could influence future regulatory decisions on similar products.