Rex Shares’ shortcut could bring Dogecoin ETF to US markets by next week
Rex Shares is making ready to bring a brand new wave of unconventional exchange-traded funds (ETFs) to US markets.
On Sept. 3, the asset supervisor filed a prospectus with the Securities and Exchange Commission (SEC) for the REX-Osprey Dogecoin ETF, which is able to commerce below the ticker DOJE.
The submitting additionally references comparable merchandise linked to XRP, Solana (SOL), Ethereum (ETH), Bitcoin (BTC), BONK, and TRUMP tokens.
Bloomberg ETF analyst Eric Balchunas noted that Rex’s efficient submitting alerts a possible launch inside days for these merchandise.
He wrote:
“Looks like Rex goes to launch a Doge ETF through the 40 Act a la SSK next week.”
Balchunas identified that whereas Dogecoin will be the first to debut, different merchandise tied to Trump, XRP, and Bonk could quickly observe.
Why REX ETF merchandise launch early
Unlike conventional ETFs that require prolonged SEC approval via the 19b-4 course of, Rex Shares has chosen a unique regulatory path.
The proposed merchandise are registered below the Investment Company Act of 1940 and structured as C-corporations. This mannequin permits the agency to sidestep the usual trade rule approval course of whereas gaining publicity to digital property via a Cayman Islands subsidiary.
Meanwhile, selecting a C-corporation construction carries essential tax implications for buyers.
VanEck explained that almost all ETFs elect to be handled as regulated funding corporations (RICs), which allows them to keep away from fund-level taxation by distributing earnings and capital positive aspects immediately to shareholders. However, RICs should meet strict necessities for earnings sources, asset diversification, and distributions.
In distinction, C-corporations face taxation on the fund degree, and any subsequent investor payouts are additionally taxable.
Investors have typically criticized this association as “double taxation.” As a end result, ETFs have a tendency to keep away from this setup.
However, REX Shares’ resolution means that pace to market and adaptability outweighed the potential tax drawbacks these merchandise may entice.
Notably, the asset supervisor had launched the first-ever staked crypto ETF within the US via this construction earlier this 12 months.
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