Wall Street Awaits Dogecoin as New ETF Prepares for Debut

DOGE ETF DOJE Could Launch This Week, Bridging Meme Coins and Traditional Finance

The first U.S. ETF centered on a meme cryptocurrency may debut this week, marking a notable step in the intersection of crypto and traditional finance — even though Dogecoin lacks conventional utility.

The Rex Shares-Osprey Dogecoin ETF (DOJE) was initially slated to launch last week alongside other crypto and politically themed ETFs, including funds tied to Bonk (BONK), XRP, Bitcoin (BTC), and a Trump-themed fund. After the delay, Bloomberg analysts Eric Balchunas and James Seyffart now see Thursday as the most likely launch date, though they caution nothing is guaranteed.

“It’s more likely than not,” Seyffart said, describing Thursday as the base case.

DOGE has been a top performer over the past month, rising about 15% despite a 3.5% dip in the last 24 hours.

If launched, DOJE would be the first U.S. ETF dedicated to a meme coin — digital assets often criticized for lacking intrinsic value. Dogecoin, Shiba Inu (SHIB), and Bonk gain traction through social media, celebrity endorsements, and speculative trading rather than fundamental use.

Balchunas highlighted the fund’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 through a Cayman Islands-based subsidiary using futures and derivatives, allowing investors to participate via traditional brokerage accounts without the need for physical custody.

DOJE was approved under the Investment Company Act of 1940, a framework typically used for mutual funds and diversified ETFs, distinguishing it from bitcoin ETFs approved under the Securities Act of 1933 for commodity-based products. In practice, the fund resembles a mutual fund more than a commodity trust.

Several firms have applied to launch spot DOGE ETFs, which would hold the token directly, but these are still under review by the SEC, which has gradually grown more accepting of crypto ETFs since approving multiple bitcoin products in early 2024.

Despite skepticism over meme coins’ utility, investor demand has remained strong. Seyffart expects similar interest in ETFs.

“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 pave the way for more meme coin ETFs or simply validate the concept. Either way, it signals a new phase in the merging of internet culture and traditional finance.