First US Dogecoin ETF Set to Debut This Week, Ushering in Memecoin Era

• The first U.S. exchange-traded fund focused solely on Dogecoin is scheduled to launch on September 11 under the ticker DOJE.
• Issued by Rex Shares and Osprey Funds, the ETF carries a 1.5% management fee and utilizes a 1940 Act structure for expedited approval.
• Dogecoin has rallied nearly 14% in the past week amid anticipation, achieving a market cap of approximately $36 billion.

The cryptocurrency landscape is evolving with the introduction of the first Dogecoin ETF in the United States.

Rex Shares and Osprey Funds have collaborated to launch the Rex-Osprey DOGE ETF, ticker DOJE, set to begin trading on September 11. Filed under the Investment Company Act of 1940, this approach allows for a quicker market entry compared to the 19b-4 process used for spot Bitcoin and Ether ETFs, though it restricts broader marketing efforts.

The fund is structured as a C-corporation with Dogecoin exposure facilitated through a Cayman Islands subsidiary, a setup that may introduce double taxation concerns for investors. This mirrors strategies employed in other crypto products, such as Rex-Osprey’s Staking Solana Fund.

Bloomberg ETF analyst Eric Balchunas described the product as groundbreaking yet unconventional, noting, “Pretty sure this is the first-ever US ETF to hold something that has no utility or purpose.” Dogecoin, originally created in 2013 as a parody of cryptocurrencies, has no inherent utility like smart contracts in Ethereum or store-of-value properties in Bitcoin, relying instead on community-driven speculation and endorsements from figures like Elon Musk.

Market reaction has been swift. Dogecoin’s price climbed about 14% over the past week, trading at roughly $0.24 with a $36 billion market capitalization, outpacing major assets amid the ETF buzz. Over $11 million in DOGE futures liquidations occurred in the last 24 hours, predominantly shorts, as bulls capitalized on the momentum.

The launch follows the strong performance of Bitcoin and Ether ETFs, which have seen substantial inflows since their approvals. With 92 additional crypto ETF proposals pending, including for Solana and XRP, analysts suggest this could signal the beginning of a memecoin ETF wave.

However, challenges persist. The 1.5% fee is considerably higher than typical Bitcoin ETF fees, potentially deterring cost-conscious investors. Additionally, Dogecoin’s volatility and lack of fundamental value pose risks, as emphasized by experts who view it primarily as a speculative play.

Traders remain optimistic, with some forecasting price targets up to $0.40 if the ETF attracts significant inflows. For further context, Bloomberg analyst Eric Balchunas shared insights on X: https://x.com/EricBalchunas.

Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.