- DOJE, the first U.S. memecoin ETF, will give investors Dogecoin exposure through a Cayman Islands subsidiary structure.
- Analyst Eric Balchunas called the DOJE launch the start of a “memecoin ETF era,” leading to debate over Dogecoin’s utility.
- SEC delayed decisions on Bitwise’s Dogecoin ETF and Grayscale’s Hedera ETF, with nearly 100 filings still under review.
The United States is preparing for the debut of its first memecoin exchange-traded fund, with the Dogecoin ETF, ticker DOJE, scheduled to launch on Thursday. The product, introduced by REX Shares and Osprey Funds, will give investors exposure to Dogecoin through a Cayman Islands subsidiary, according to its prospectus.
Bloomberg Intelligence analyst Eric Balchunas confirmed the upcoming listing in a post on X, noting it will trade under the Investment Company Act of 1940. The launch represents a new entry in the lineup of regulated digital asset products following the approval of Bitcoin and Ether ETFs last year.
Balchunas Comments on Utility and Market Shift
Eric Balchunas described the DOJE listing as the beginning of the “memecoin ETF era.” He noted that unlike other funds, this vehicle is structured under the 1940 Act, the same framework used by certain registered investment funds.
In his remarks, Balchunas pointed out that Dogecoin was originally created as a joke, raising questions about its lack of inherent utility. His comments sparked reactions from Dogecoin supporters, who disputed the characterization.
Regulatory Environment and Pending Filings
While DOJE prepares for trading, regulators continue to deliberate on several pending crypto ETF applications. On Tuesday, the Securities and Exchange Commission announced it would delay decisions on both Bitwise’s proposed Dogecoin ETF and Grayscale’s spot Hedera ETF.
The agency stated it required a longer review period before making a determination. These delays come as nearly 100 spot crypto ETF filings await approval, spanning assets such as Solana and XRP.
REX-Osprey’s Different Approach to Approval
Unlike the delayed proposals, the Rex-Osprey Dogecoin ETF secured its listing pathway by leveraging the Investment Company Act of 1940. This law governs pooled investment funds and provides investor protection measures against conflicts of interest and fraud.
By utilizing this framework, the issuers were able to bypass the Securities Act of 1933 route, which typically governs grantor trusts. This strategic approach allowed REX Shares and Osprey Funds to move forward while other applications remain under review.
The approval of DOJE comes as Paul Atkins, the new SEC chairman, has emphasized a more favorable stance toward digital assets. Analysts, including Bloomberg’s James Seyffart, noted last month that 92 similar crypto ETF proposals remain under consideration.
