Simply put
- Rex-Sosprey’s Doje ETF experienced significant trading volumes upon its debut on Thursday.
- The company is now looking to secure approval for leveraged ETF products aimed at providing Doje with 1 to 1.5 times leveraged exposure.
- In addition to offering long leveraged exposure, it aims to distribute weekly payments to its holders.
Rex-Soprey’s Doje, recognized as the first US spot Dogecoin ETF, created a notable trading volume when it launched on Thursday, ranking among the top five ETF introductions of the year. The issuer has already submitted an application for a more adventurous, leveraged option.
In a registered filing with the SEC on the same day, Rex-Soprey sought to initiate the Rex Doje Growth & Income ETF, designed to offer 105-150% exposure to Doje’s daily price fluctuations.
“Funds desire daily investment outcomes, which markedly differ from most other exchange-traded funds,” the filing stated. “Consequently, these funds may entail greater risks than non-leveraged counterparts.”
The Rex Doje Growth & Income ETF encompasses three main components: a foundational Dogecoin ETF (DOJE) with leveraged exposure, a covered call strategy to generate income, and investments in short-term financial or money market resources.
The principal goal is to provide weekly distributions, with a secondary aim of achieving daily investment results, reflecting 1-1.5 times the change rate in DOJE.
Leveraged investment opportunities aren’t unfamiliar territory for Rex-Soprey. They offer a range of leveraged ETF options, which, while potentially increasing exposure, also elevate risk for investors.
The current prospectus clarifies that this added risk won’t suit every investor.
It notes, “Funds may not be appropriate for all investors.” The fund targets knowledgeable investors who are pursuing specific, daily leveraged investment results, recognize the risks associated with leverage, and are prepared to monitor the portfolio frequently.
Due to its daily leveraged structure, the company also warns that if Doje yields remain stagnant, the fund might incur losses over time, with growth and revenue ETFs also at risk, even during periods of increasing Doje values.
Moreover, the prospectus emphasizes there’s no guarantee that the investment strategy will be correctly executed or that weekly distributions can indeed be made.
In recent market movements, Dogecoin (Doge) dropped by 6% within the last 24 hours, settling at $0.265. While major meme coins surged over 22% last month, they are still significantly below their peak of $0.73 in 2021.
According to Eric Bulknas, a senior ETF analyst at Bloomberg, Rex-Sosprey’s standard Doje ETF began trading on Thursday, generating around $17 million in trading volume, positioning it among the top five launches this year.
Meanwhile, the Rex-Sosprey XRP ETF also launched on Thursday, significantly boosting demand and contributing to a cumulative trading volume of about $38 million in new fund rollouts this year.
