Dogecoin ETF Set to Launch
The Dogecoin Exchange-Traded Fund (ETF) is on the verge of entering the market.
This week, Rex Shares and Osprey Funds revealed that they will soon launch “Doje,” an ETF designed to follow the performance of the well-known Memecoin.
“Doje will be the first ETF allowing investors to gain exposure to the performance of the iconic Memecoin, Dogecoin,” noted Rex-Soprey.
While this is the first Dogecoin ETF, it’s not the same as the spot ETF that the SEC approved for Bitcoin and Ethereum last year.
Instead, it operates as a slightly different type. It’s categorized as a 40 ACT ETF.
You might wonder, what’s the distinction? A Spot Crypto ETF directly holds the actual cryptocurrency. In contrast, a 40 ACT ETF offers indirect exposure to the crypto through methods like futures or swaps.
According to Rex-Soprey’s prospectus, about 80% of the fund’s assets are expected to be invested in Dogecoin Instruments, which could include derivatives such as futures and swaps.
This workaround approach was previously utilized by Rex-Osprey to introduce the Solana Staking ETF in July.
SEC’s Review Process
At the same time, the SEC is currently assessing Spot Dogecoin ETF applications from various publishers, including Grayscale, Bitwise, and 21Share.
These applications are part of a larger batch of over 90 exchange-traded products under SEC review, which also consists of Altcoin applications like Solana, XRP, and Litecoin.
The SEC is expected to start making decisions on some of these applications around mid-October. Analysts, such as Baltunas, predict that major altcoins like Litecoin and XRP have the highest chances of receiving approval.
Supporters of these altcoins are optimistic that ETFs could help elevate token prices, similar to what has happened with Bitcoin and Ethereum.
The significant influx of institutional investment in Bitcoin and Ethereum has propelled both cryptocurrencies to unprecedented heights.
For instance, the Bitcoin ETF saw $2 billion withdrawn within just three days of approval, amassing $100 billion in assets over the course of a year, ultimately becoming the most successful ETF ever.
