REX Shares is preparing to launch the first U.S. exchange-traded fund (ETF) on Dogecoin, leveraging an alternative registration method that offers a faster and less restrictive route to approval.
Regulatory Strategy and Market Position
REX aims to launch the Dogecoin ETF under the ticker DOJE by utilizing the Investment Company Act of 1940, which allows bypassing the lengthy SEC approval process. Bloomberg analyst Eric Balchunas stated that the ETF could debut as soon as next week following the effective prospectus filing with the SEC. Most cryptocurrency ETFs in the U.S. require issuers to file Forms S-1 and 19b-4, which can prolong the process. In contrast, the 40 Act fund can expedite approval and market entry.
Dogecoin Market Conditions and Institutional Appeal
Currently, Dogecoin is trading at $0.2142 with a market capitalization of $32.31 billion. Its price has increased by 121.26% in the past year. REX's success with this alternative path may overshadow competing Dogecoin ETF applications from 21Shares, Bitwise, and Grayscale, which remain under SEC review. Notably, REX has also filed for an ETF linked to the OFFICIAL TRUMP token.
Future Perspectives of Dogecoin ETF
With strengthening market positions and daily activities surrounding Dogecoin, the sector of meme cryptocurrency ETFs could open new avenues for investors. However, experts warn of potential risks associated with including speculative tokens in ETFs, which could lead to unstable trading behavior.
The launch of the first Dogecoin ETF by REX Shares may represent a significant milestone in the regulation and acceptance of crypto assets in traditional financial products, opening new opportunities for market participants.
