The legitimacy of cryptocurrencies has been rising for years – especially since the launch of the first U.S.-based spot Bitcoin exchange-traded fund (ETF) in January 2024 – but this week, an even more significant development happened: the first Dogecoin ETF launched.
Now I know what you are thinking… Dogecoin is essentially an entertaining joke - a coin based on a meme. Yes, this is true. But as anyone who has been paying attention to internet culture will tell you, memes are one of the most popular themes.
The Rise of the Crypto ETF
Bitcoin is well-known as digital gold, and as time progresses, it lives up to that moniker more and more. That’s why the launch of the first spot BTC ETF wasn’t really a shock. Financial analysts have been predicting (and betting on) that for years.
But if you go back to the hype of 2021, before the contagion events that were the collapse of Terra/Luna and FTX, the thought of a Dogecoin ETF would have gotten you laughed off-line. Even if Elon Musk fancied the token, that didn’t matter because everyone knew it was created as a joke.
Bitcoin changed the narrative in 2024, becoming the fastest-funded ETF in history. While the follow-up launch of Ethereum ETFs was more muted, the benefits were clear: Institutions finally got a taste of what crypto bros had been enjoying for years, and despite stocks continuing to hit new all-time highs, there’s nothing quite like the thrill of cryptocurrency bull markets.
Introducing the DOJE ETF
It’s in that backdrop that asset manager REX Shares, known for innovative ETFs, partnered with Osprey Funds to launch the DOJE ETF under the Investment Company Act of 1940. Doing so allows the product to function like a mutual fund and use derivatives via a Cayman Islands subsidiary to sidestep the grueling Securities Act of 1933 process that delayed rivals like Bitwise's spot Dogecoin ETF until November 2025.
But the token's background and reason for being have sparked debate among the investment community, with Bloomberg ETF analyst Eric Balchunas saying he’s “Pretty sure this is the first-ever US ETF to hold something that has no utility or purpose.” While the crypto community has pushed back against this assertion, it’s not without its merits, leaving many to question where things are headed.
The truth is that there has been noting standard about the meteoric rise of cryptocurrencies since Bitcoin stepped onto the scene in 2009. As many of the earliest adopters predicted, it has led to a fundamental transformation of the investment landscape.
While Musk helped Dogecoin rocket higher in 2021, this time around, the launch of a DOGE-backed ETF is exciting the bulls, with DOGE surging more than 20% amid anticipation of the launch of $DOJE.
DOGE/USD 1-day chart. Source: TradingView
The ETFs structure – 80% DOGE exposure via futures, 20% Treasuries – offers retail investors easy access through brokerage accounts, complete with a 1.5% expense ratio. No more crypto wallets or exchange hacks; just buy shares like any stock.
How Memecoin ETFs Could Impact the Investment Space
The implications are stark: this development democratizes memecoin investing, potentially channeling billions from 401(k)s and pensions into DOGE. CleanCore Solutions raised $175 million for a "Dogecoin treasury" aiming for 5% of the circulating supply. Trading volume topped $1.1 billion, signaling institutional FOMO.
The broader significance ripples far beyond one ETF. For the crypto market, DOJE validates memecoins as legitimate assets, paving the way for products on Shiba Inu, Bonk, or even politically themed funds like a Trump ETF. It coincides with the SEC's new “generic listing standards,” fast-tracking altcoin ETFs if futures trade for six months – so watch for Solana, XRP, and Avalanche filings in the near future.
Analysts predict a 40% DOGE rally to $0.38 short-term, with $1 by year-end if adoption surges. That said, risks remain – high volatility, regulatory scrutiny on “useless” assets, and potential bubbles from hype-driven flows.
While critics decry it as gambling in disguise, proponents see meme culture finally reaching Wall Street, which could lead to increased liquidity and legitimacy, drawing in normies and institutions alike.
As Balchunas noted, if DOGE can ETF, what's next? The launch isn't just about a dog; it's crypto's cheeky nod to inclusivity, proving even jokes can fetch serious capital. With Fed rate cuts looming, DOJE could ignite altseason 2.0, reminding us: In finance, the meme is mightier than the model.
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