- Rex and Osprey filed an SEC prospectus to launch the first Dogecoin ETF under the 40 Act.
- The DOGE ETF will use a Cayman subsidiary structure, similar to Rex’s Solana staking ETF.
- Grayscale and Bitwise await SEC review while Rex may advance faster with its 40 Act route.
Rex Shares and Osprey Funds could introduce the first Dogecoin exchange-traded fund in the United States as early as next week. The issuers filed an effective prospectus with the Securities and Exchange Commission for the REX-Osprey DOGE ETF, which is expected to trade under the ticker DOJE.
ETF structure and regulatory pathway
The filing shows the fund would seek exposure to Dogecoin through a Cayman Islands subsidiary called the REX-Osprey DOGE (Cayman) Portfolio S.P. The prospectus explained that “the principal investment strategies and principal risks of the DOGE Subsidiary constitute principal investment strategies and principal risks of the Fund.”
The structure uses the Investment Company Act of 1940, often referred to as the 40 Act, which regulates pooled investment vehicles. To comply with restrictions under the law, ETFs can gain exposure to restricted assets by investing through an offshore subsidiary.
This approach has been described by ETF Store president Nate Geraci as a “regulatory end-around.” Rex Osprey already used this method when launching its Solana staking ETF in June. Bloomberg Intelligence analyst Eric Balchunas said Doge looks like the first to go out, but the prospectus also includes Trump, XRP and Bonk, so those could follow at some point.
Market outlook and competing filings
The SEC under Chairman Paul Atkins has recently taken steps viewed as more open toward crypto-based ETFs. In July, it approved in-kind creations and redemptions for crypto ETFs, followed by permitting applications for spot Bitcoin and Ethereum products.
Several asset managers, including Grayscale and Bitwise, have also submitted applications for a Dogecoin ETF using traditional registration routes. Those filings remain under SEC review. Rex’s use of the 40 Act may allow it to move faster than its competitors.
Dogecoin has seen strong price movement over the past year, climbing 116.67%. However, it trades at $0.2129, down 54% from its December 2024 high of $0.4672. The prospectus cautioned that Dogecoin “is subject to unique and substantial risks” due to rapid price swings and market uncertainty.
