Dogecoin ETF Debuts Under 1940 Act, Boosts Institutional Access
Dogecoin ETF DOJE launched on Wall Street under the Investment Company Act of 1940, becoming the first U.S. ETF based on a meme coin. The Rex-Osprey Doge ETF uses derivatives and a Cayman Islands subsidiary to meet diversification rules, contrasting with spot Bitcoin ETFs under the 1933 Securities Act. Ahead of its debut, DOGE prices rose nearly 13%. Critics say the Dogecoin ETF simply adds an expensive institutional wrapper around a token traders can buy directly. Supporters argue the ETF brings legitimacy through custody, audits and disclosures, broadening access for mainstream and institutional investors. The Dogecoin ETF launch followed an SEC rule change fast-tracking commodity ETF listings and comes after earlier spot Bitcoin ETF approvals. The SEC is reviewing 92 crypto ETF applications, including proposals for Solana, XRP, Bonk and a Trump token. This development signals growing institutional investment and mainstream adoption of meme coins.
Bullish
The debut of the Dogecoin ETF under the 1940 Act has driven a near 13% price jump, reflecting strong trader appetite. In the short term, the ETF’s structured access and increased liquidity are likely to boost DOGE trading volumes and price. Over the long term, institutional custody, audits and SEC’s fast-tracked ETF approvals could underpin sustained inflows and mainstream adoption of Dogecoin, supporting a bullish outlook despite fee and structure criticisms.