Dogecoin ETF Set to Launch in US Next Week, Says Analyst

TLDR

• The first Dogecoin ETF may launch in the US next week, according to Bloomberg analyst Eric Balchunas.
• REX Shares has filed a prospectus with the US Securities and Exchange Commission for the Dogecoin ETF.
• The ETF issuer plans to use the 40 Act, a regulatory pathway that differs from the traditional approval process.
• The prospectus warns investors about the significant risks associated with investing in Dogecoin.
• Dogecoin has surged by 116.67% over the past year but remains down by 54% from its December 2024 high.

A Dogecoin ETF could launch in the United States as early as next week, according to Bloomberg analyst Eric Balchunas. REX Shares, an ETF issuer, has filed a prospectus with the US Securities and Exchange Commission (SEC). The move has raised significant attention in the cryptocurrency and financial sectors.

REX Shares Moves Forward with Dogecoin ETF Launch

REX Shares plans to launch the first-ever Dogecoin ETF using the 40 Act. Eric Balchunas confirmed this possibility in a Thursday tweet. The filing follows a regulatory pathway that differs from the typical ETF approval process.

REX Shares’ prospectus warns that investing in Dogecoin is risky due to its volatile nature. It notes that the market for Dogecoin is prone to “rapid price swings, changes, and uncertainty.” As the cryptocurrency has gained popularity, such warnings are seen as crucial in navigating its risks.

The filing also comes at a time when Dogecoin has shown significant growth. Over the past year, Dogecoin has surged by 116.67%, though it is down by 54% from its December 2024 high. As of publication, Dogecoin trades at around $0.2129, down from its December peak of $0.4672.

REX Shares Takes Regulatory Shortcut for DOGE ETF

REX Shares is opting for a “regulatory end-around” approach to launch its Dogecoin ETF. Instead of filing the usual Form S-1 and Form 19b-4 with the SEC, REX is using the 40 Act. This strategy helped the company launch its Solana staking ETF, bypassing typical SEC delays.

This move contrasts with other ETF issuers like 21Shares, Bitwise, and Grayscale. These companies are still waiting for SEC decisions after filing their Dogecoin ETF proposals. As REX’s filing progresses, it may set a precedent for other crypto-focused ETFs in the future.

Dogecoin has long been in the public eye, especially with its ties to billionaire Elon Musk. Musk has famously referred to himself as the “Dogefather” and called Dogecoin a “hustle” in 2021. His involvement in Dogecoin continues to attract attention from both investors and mainstream media.

The rise of Dogecoin has led to increased interest from institutional investors. Recently, Musk’s attorney, Alex Spiro, was reported to chair a company aiming to raise $200 million for Dogecoin investments. This growing institutional interest highlights the potential for more crypto-focused financial products, including the Dogecoin ETF.

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