Dogecoin Nears Wall Street Debut With ETF Scheduled for Launch

Meme Coin ETF DOJE Could Launch This Week, Bridging Crypto and TradFi

The first U.S. exchange-traded fund (ETF) focused on a meme coin may finally debut this week, marking a notable step in the merging of cryptocurrency with traditional finance — even though “utility” is not part of its formula.

The Rex Shares-Osprey Dogecoin ETF (DOJE) was originally set to launch last week alongside a slate of crypto and politically themed ETFs, including funds tied to Bonk (BONK), XRP, Bitcoin (BTC), and even a Trump-themed fund. However, DOJE’s launch was delayed, leaving the market waiting. Bloomberg ETF analysts Eric Balchunas and James Seyffart now point to Thursday as the most probable launch date, though they emphasize that nothing is guaranteed.

“It’s more likely than not,” Seyffart said, calling Thursday the base case.

DOGE has been a strong performer over the past month, up roughly 15% even after a 3.5% decline in the past 24 hours ahead of the ETF’s expected debut.

If launched, DOJE would become the first U.S. ETF centered on a meme coin — cryptocurrencies often criticized for having little to no economic purpose. Tokens such as Dogecoin, Shiba Inu (SHIB), and Bonk typically rise in popularity through social media trends, celebrity endorsements, and speculative trading rather than inherent utility.

Balchunas underscored DOJE’s significance on X: “First-ever US ETF to hold something that has no utility on purpose.”

Unlike a spot ETF, DOJE will not hold DOGE directly. Instead, it will use a Cayman Islands-based subsidiary to gain exposure through futures and other derivatives. This structure allows investors to participate in DOGE performance through a traditional brokerage account without the fund holding the token physically.

DOJE was approved under the Investment Company Act of 1940, a framework usually applied to mutual funds and diversified ETFs. This differs from many bitcoin ETFs approved under the Securities Act of 1933, which governs commodity-based and asset-backed products, making DOJE more similar to a mutual fund than a commodity trust.

Applications for spot DOGE ETFs, which would hold the meme coin itself rather than derivatives, are still under SEC review. The regulator has gradually grown more receptive to crypto ETFs since approving several bitcoin products in early 2024.

Despite long-standing skepticism over meme coins’ lack of underlying value, investor demand remains robust. Seyffart predicts similar interest in the ETF market.

“There will be a bunch of products like this, whether you love it or need it — they’re coming to market,” he said. “Many financial products already exist primarily for short-term trading. If there’s an audience for this in crypto, it’s likely to find one in ETFs and TradFi as well.”

Whether DOJE sparks a wave of meme coin ETFs or simply proves the concept is feasible, its launch signals a new chapter in the intersection of internet culture and traditional finance.

About The Author

ctleditor

See author's posts