First Memecoin ETF Launching in the US
The first Memecoin Exchange-Traded Fund (ETF) in the US is set to launch on Thursday. This event continues the trend of expanding regulated crypto products, following the successful introduction of Bitcoin and Ether Funds last year.
Bloomberg ETF Analyst Eric Bulknath mentioned in a social media post that the Rex-Soprey Doge ETF (Doje) will make its debut on Thursday. He noted, “I’m fairly certain this is the first US ETF to hold something that lacks utility or purpose.”
Bulknath hinted at a potential launch last week under the Investment Companies Act of 1940. This law differs from the Securities Act of 1933 and typically governs grant trusts that manage physical assets or derivatives.
In anticipation of this approval, Dogecoin (Doge) saw impressive gains, climbing nearly 13% last week. This growth isn’t just a minor fluctuation; Dogecoin, often viewed as the original Memecoin, has been around for over ten years, boasting a substantial investor community and inspiring many imitators that capture various aspects of crypto culture. Currently, it has a market cap of $36 billion.
The fact that Dogecoin is included in ETFs indicates a rising recognition that even Memecoins can draw interest from institutional investors.
Upcoming Cryptographic ETFs
The approval of the Rex-Sosprey Doge ETF comes as regulators assess numerous other crypto-focused products, which include assets like Dogecoin, Solana (SOL), and XRP (XRP). According to Bloomberg ETF analyst James Seyfert, there are about 92 similar proposals currently in the pipeline.
The initial wave of crypto ETFs primarily concentrated on Bitcoin (BTC) and Ether (ETH). Notably, the Spot Bitcoin ETF launched earlier this year drew in hundreds of billions of dollars, marking one of the most successful ETF launches on record. Demand for Ether funds has also seen significant growth this year.
This next wave of crypto ETFs follows a change in the SEC’s stance on digital assets during the administration of former President Donald Trump. The agency has indicated that tokenization is viewed as a financial innovation, clarifying that certain liquidity activities may fall outside the realm of securities law.
