As the world of cryptocurrencies continues to evolve, a new player is set to enter the market with a groundbreaking product. REX Shares, in collaboration with Osprey Funds, has filed for the REX-Osprey™ DOGE ETF, with the ticker $DOJE. This ETF is designed to provide direct exposure to Dogecoin (DOGE) and track its performance through a subsidiary based in the Cayman Islands. What sets this filing apart is the use of the Investment Company Act of 1940, also known as the 40 Act, which could potentially fast-track the approval process and allow the ETF to hit the market as early as next week.
Despite the inherent volatility and risks associated with Dogecoin, REX’s bold move to launch the $DOJE ETF reflects a strategic bet on the demand for memecoins and the growing interest of investors in ETFs. Eric Balchunas, an ETF analyst at Bloomberg, has indicated that the approval for the filing may be imminent, suggesting that REX could be the first to launch a Dogecoin ETF.
But the ambition of REX Shares doesn’t stop at Dogecoin. The prospectus also mentions plans for ETFs tied to other memecoins like XRP, TRUMP, and BONK, indicating a broader strategy to capitalize on the speculative retail demand in the market. By taking this multi-product approach, REX could establish itself as a leader in the nascent memecoin ETF category.
What makes the REX-Osprey™ DOGE ETF unique is its use of the 40 Act, a regulatory structure that offers a faster route to market compared to traditional crypto ETF filings. By structuring the ETF under the 40 Act, REX can bypass the lengthy approval process that has delayed many other crypto fund proposals. This strategic move could give REX a significant advantage in launching its ETF ahead of competitors.
While REX forges ahead with its DOGE ETF, other players in the market like 21Shares, Bitwise, and Grayscale are still awaiting SEC approval for their Dogecoin ETF proposals. Despite the delays, market sentiment remains positive, with the odds of a spot DOGE ETF approval reaching 80% according to Polymarket. If the $DOJE ETF goes live as planned, REX Shares could establish itself as a pioneer in the memecoin ETF space, paving the way for future developments and potentially attracting traditional investors to the world of Dogecoin.
Overall, the introduction of the REX-Osprey™ DOGE ETF marks an exciting development in the cryptocurrency market, showcasing innovation and a strategic approach to meeting investor demand for memecoins. With the potential launch of the $DOJE ETF on the horizon, all eyes are on REX Shares as they navigate the evolving landscape of digital assets and ETFs.