DOJE ETF Set to Launch, Bringing Meme Coin Dogecoin Closer to TradFi
The first U.S. ETF focused on a meme cryptocurrency could debut this week, marking a significant step in the convergence of crypto and traditional finance — even though the token itself has little to no inherent utility.
The Rex Shares-Osprey Dogecoin ETF (DOJE) was initially scheduled to launch last week alongside other crypto and politically themed ETFs, including funds linked to Bonk (BONK), XRP, Bitcoin (BTC), and even a Trump-themed fund. The debut was delayed, but Bloomberg analysts Eric Balchunas and James Seyffart now point to Thursday as the most likely launch date, noting that nothing is certain.
“It’s more likely than not,” Seyffart said, describing Thursday as the base case.
DOGE has been among the top performers over the past month, rising roughly 15% despite a 3.5% drop in the past 24 hours ahead of the ETF’s potential launch.
If launched, DOJE would become the first U.S. ETF dedicated to a meme coin — cryptocurrencies often criticized for lacking economic purpose. Dogecoin, Shiba Inu (SHIB), and Bonk typically gain attention through internet trends, celebrity endorsements, and speculative trading rather than fundamental value.
Balchunas highlighted the ETF’s novelty 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 gain exposure via a Cayman Islands-based subsidiary using futures and other derivatives, allowing investors to participate through a traditional brokerage account without physical custody of the token.
The fund was approved under the Investment Company Act of 1940, typically used for mutual funds and diversified ETFs, rather than the Securities Act of 1933, which governs commodity-based products. This makes DOJE more akin to a mutual fund than a commodity trust.
Several firms have applied to launch spot DOGE ETFs, which would hold the coin directly, though these applications are still under SEC review. The regulator has gradually become more accepting of crypto ETFs following approval of multiple bitcoin products in early 2024.
Despite skepticism over meme coins’ lack of utility, investor demand has remained strong. Seyffart expects similar interest in the ETF space.
“There will be a bunch of products like this coming to market, whether you love it or need it,” he said. “Many financial products 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.”
The launch of DOJE could either open the door for additional meme coin ETFs or simply demonstrate the viability of the concept. Either way, it signals a new chapter in the blending of internet culture and traditional finance.
