First Dogecoin ETF May Debut in the US Next Week: Bloomberg Analyst
A Dogecoin exchange-traded fund (ETF) could possibly be hitting US markets as quickly as subsequent week, in line with Bloomberg ETF analyst Eric Balchunas.
Key Takeaways:
- REX Shares might launch the first U.S. Dogecoin ETF subsequent week utilizing the sooner 40 Act construction.
- Unlike conventional crypto ETFs, 40 Act funds keep away from SEC delays and regulatory hurdles.
- Dogecoin’s cultural enchantment and worth rebound proceed to gasoline institutional curiosity and ETF filings.
In a Thursday post on X, Balchunas pointed to ETF issuer REX Shares submitting an efficient prospectus with the US Securities and Exchange Commission (SEC), signaling the potential launch of a Dogecoin ETF beneath the Investment Company Act of 1940, generally known as the “40 Act.”
“Looks like Rex goes to launch a Doge ETF through the 40 Act a la $SSK subsequent week,” Balchunas wrote. The identical construction was beforehand utilized by REX to roll out a Solana staking ETF earlier this yr.
40 Act ETFs Bypass Regulatory Roadblocks Facing Spot Crypto Funds
Unlike spot crypto ETFs filed beneath Form S-1 and 19b-4, a 40 Act ETF takes another path to market and avoids a few of the delays going through conventional crypto funds.
ETF Store President Nate Geraci has beforehand referred to as this strategy a “regulatory end-around.”
In its submitting, REX acknowledged the risky nature of Dogecoin, warning traders that DOGE is “topic to distinctive and substantial dangers,” together with fast worth adjustments and market uncertainty.
Dogecoin has climbed 116.67% over the previous yr, in line with CoinMarketCap. However, the token has cooled from its December 2024 high of $0.4672, now buying and selling close to $0.2129.
REX isn’t the solely participant eyeing Dogecoin publicity. Earlier this yr, 21Shares submitted a proper proposal for a Dogecoin ETF, following comparable filings from Bitwise and Grayscale, all nonetheless awaiting SEC choices.
In addition to Dogecoin, REX has filed for an ETF linked to the TRUMP token, aiming to supply publicity by holding shares in an offshore entity that owns the asset.
Dogecoin continues to take pleasure in cultural relevance far past crypto circles.
Its long-time supporter, Elon Musk, famously referred to it as “a hustle” throughout a 2021 Saturday Night Live look.
More lately, Musk’s lawyer Alex Spiro was reported to be heading a $200 million public firm centered on Dogecoin investments.
If authorized, REX’s fund can be the first US-listed ETF providing direct publicity to the meme coin that began as a joke and have become a cultural icon.
SEC is Reviewing 92 Crypto ETF Applications
As reported, the SEC is currently reviewing 92 crypto ETF applications, in line with Bloomberg Intelligence analyst James Seyffart.
An in depth spreadsheet printed on August 28 exhibits most of those filings, particularly these linked to Solana, XRP, and Litecoin, are going through last choices by October.
The wave of latest functions displays rising curiosity in altcoin-focused ETFs and will spark recent capital inflows into the crypto market.
Solana and XRP are main the ETF race, with eight and 7 pending functions respectively. These altcoins now rank as the most focused crypto investments after Bitcoin and Ethereum.
The general rely of pending functions has climbed quickly, from 72 in April to 92 in August, marking a major uptick in institutional curiosity and regulatory engagement.
As reported, digital asset funding merchandise bounced again final week, drawing in $2.48 billion in inflows after a short interval of outflows.
The surge pushed August’s whole inflows to $4.37 billion, bringing the year-to-date determine to $35.5 billion.
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