The first-ever Dogecoin ETF (exchange-traded fund) is about to launch, marking a significant moment for meme coins and the crypto world. Experts are weighing in on what this means for the future.
The Meme Coin ETF Arrives
Bloomberg analyst Eric Balchunas announced the upcoming launch of REX-Osprey’s Dogecoin ETF (DOJE) under the 40 Act. He called it the first US ETF to intentionally hold something with no practical use – because, let’s face it, Dogecoin started as a joke. More Dogecoin ETFs are likely on the way, as other applications are pending SEC approval.
Dogecoin’s Unique Position
Unlike many other crypto ETFs, DOGE is a proof-of-work (PoW) coin like Bitcoin, meaning there’s no “staking” to generate extra income for investors like you get with proof-of-stake (PoS) coins such as Ethereum or Solana. This lack of inherent utility is a key difference.
However, Incyt CEO Mike Maloney argues that while Dogecoin began as a joke, it’s become a serious investment, attracting real investors and developers. He emphasizes the importance of the strong community surrounding the coin. Projects like DogeOS are even building real-world applications on the Dogecoin network. DogeOS CEO Jordan Jefferson points out that Wall Street is finally catching on to Dogecoin’s potential.
How the Dogecoin ETF Works
Bloomberg analyst James Seyffart explained that the REX-Osprey ETF, filed under the 33 Act, is slightly different from Bitcoin and Ethereum ETFs. While it will hold Dogecoin, it won’t be 100% Dogecoin. The fund will use a mix of spot Dogecoin and other spot ETFs, allowing for some diversification and the use of derivatives. The launch was initially expected this week but has been pushed back to next week.
Current Market Conditions
At the time of writing, Dogecoin is trading around $0.26, up over 4% in the last 24 hours.