Bloomberg ETF analyst Eric Balchunas said in a post on X that the first approved Dogecoin (DOGE) exchange-traded fund (ETF) in the United States could launch as soon as next week.
Balchunas noted that REX Shares, a major ETF issuer, appears ready to make this fund available via the Investment Company Act of 1940 (the “40 Act”). He cited the recently filed effective prospectus with the U.S. Securities and Exchange Commission (SEC).
The prospectus listed both the opportunities and risks of a product like this, but warned that Dogecoin was still a “relatively new innovation” that had “unique and substantial risks,” including significant price volatility, regulatory actions, and unknown future demand.
REX’s Regulatory Strategy Mirrors Its Solana Staking ETF
Unlike other crypto ETF issuers that use the traditional way, filing forms S-1 and 19b-4, REX is taking advantage of the 40 Act route to avoid some of the red tape from the SEC.
This is the same regulatory path that was successfully used to launch REX’s Solana staking ETF.
ETF Store president Nate Geraci referred to the 40 Act as “an end-around with the regulators,” allowing issuers to move faster than people relying on the traditional methodology.
Meanwhile, competitors such as 21Shares, Bitwise, and Grayscale still have their Dogecoin ETF proposals submitted earlier this year in line awaiting SEC approval.
Also Read: Canada To Launch First Spot Solana ETFs With Staking On April 16th, Details Inside
Dogecoin’s Market Performance and Whale Activity
Although the enthusiasm surrounding ETFs has created a lot of buzz, Dogecoin’s market price has been mixed over the past few months.
DOGE has experienced a spike of more than 116% year-on-year; however, DOGE is still down 54% from its all-time high of $0.4672 from December 2021.
As of writing, Dogecoin is trading at $0.2142 with a market cap of $32.3 billion and daily trading volume is above $1.25 billion.
Interestingly, into the block, an on-chain analytics company, reported a 220% increase in large DOGE transactions of more than $100K over the prior week.
Analysts view that as clear evidence that whales and institutional investors are positioning themselves ahead of possible ETF approval and further mainstream payment integrations.
Also Read: Wisconsin Offloads $321M in BlackRock’s Bitcoin ETF Stake, Retains $19M in Coinbase
Mainstream Relevance and Elon Musk’s Influence
Dogecoin is an oddity in the cryptocurrency space, serving as a bridge between budding meme culture and potential real-world adoption.
Its mainstream notoriety was buoyed by Elon Musk, who referred to himself as the “Dogefather” and alluded to DOGE as “a hustle” during his 2021 appearance on Saturday Night Live.
On a more recent note, it has been reported that Musk’s attorney, Alex Spiro, is chairing a public company looking to raise $200 million to invest in Dogecoin-related projects.
Should DOGE be incorporated into Musk’s X platform payment infrastructure, it could gain exposure to over 550 million active users, a level of adoption no other meme token can touch.
Also Read: Cboe BZX and NYSE Arca Submit Joint Proposal to Streamline Crypto ETF Listing Rules
Broader ETF Momentum in the U.S. Crypto Market
Plenty beneath the surface of a possible Dogecoin ETF includes a broader wave of cryptocurrency-based exchange-traded products in the U.S. ETF universe.
On April 2nd, VanEck filed as a trust entity in Delaware for a potential Binance Coin (BNB) ETF to provide regulated exposure to the spot price of BNB, according to UnoCrypto.
Just recently, on July 23rd, we reported that 21Shares filed an SEC application for an Ondo Finance (ONDO) ETF, which caused a bump of 7% in ONDO’s price.
These developments within the marketplace highlight an increasing level of institutional interest and regulatory jockeying as issuers search for creative solutions to bring crypto ETFs to market.
If REX’s Dogecoin ETF brings success, it may create a floodgate for other altcoin-centered ETFs to enter a space that is still very unregulated.
Also Read: Harvard Management Company Makes Major Move With $116M Investment In BlackRock Bitcoin ETF