REX Shares is about to launch what it claims will be the first Dogecoin ETF in the US. They announced this on X (formerly Twitter), even though several other companies are still waiting for the SEC to approve their Dogecoin ETF applications.
How REX is Getting Ahead
So how can REX launch a Dogecoin ETF when others are stuck in the SEC queue? It’s all about how they structured it.
Most other companies are using a method that requires a special exchange rule change (a 19b-4 order) before they can list their ETF. REX, however, is using a different type of ETF structure (a ’40-Act open-end ETF trust). This lets them register with the SEC in a different way, avoiding the need for that special rule change. Think of it like using a back door. They used this same method for their Solana + Staking ETF, which launched earlier this year.
Their Dogecoin ETF will invest at least 80% of its assets in Dogecoin or things that track Dogecoin’s price, possibly using futures and swaps. They’ll use a Cayman Islands subsidiary to hold some of the assets.
The Competition
Other companies, like Bitwise and 21Shares, are also trying to launch Dogecoin ETFs, but they’re using the more traditional method, which means they have to wait for the SEC and the exchanges to approve their applications. Grayscale is also in the mix. These are all “commodity ETPs” requiring that extra step.
The Fine Print
REX’s announcement is just a teaser. The SEC still needs to approve their registration, and an exchange needs to agree to list it before it can actually start trading. Even with their clever strategy, there are still hurdles to clear. At the time of writing, Dogecoin was trading at $0.2165.