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Key Insights:
- Rex-Osprey Funds is set to launch a Dogecoin Exchange Traded Fund (ETF) on Thursday.
- The proposed Dogecoin ETF marks the first ETF launch for a zero-utility asset in the industry.
- Memecoins are largely popular for huge ROI if traded, but their extremely volatile nature and zero utility have become a source of growing criticism.
Dogecoin is set to become the first memecoin with an Exchange Traded Fund (ETF), following reports of a potential ETF launch by Rex-Osprey Funds.
The development was revealed by Eric Balchunas, Senior ETF Analyst at Bloomberg, highlighting the timing of the proposed launch against the backdrop of growing calls for memecoin scrutiny in the US crypto market.
He announced the proposed launch as the official kick-off of the memecoin era, describing the proposed Dogecoin ETF launch as the first-ever US ETF to hold something that has no utility on purpose.
Balchunas pointed out that in light of the proposed Dogecoin ETF launch, there was still a big group of 33-acters waiting for the approval of the Securities and Exchange Commission.
Growing Scrutiny and Arguments against memecoins
The proposed Dogecoin ETF launch by Rex-Osprey Funds stirred the hornet’s nest, bringing back long-standing criticisms of memecoins as assets with no real utility.
Following the announcement of the proposed launch, Many crypto enthusiasts expressed disgust at the idea of a memecoin having an ETF.
“ $DOGE will be the first zero-utility (i.e. blatantly ‘USELESS’) asset to have an ETF in the US” an X user Unipcs reacted to Eric Balchunas’ tweet.
Others harped on the fact that Dogecoin has no utility and shouldn’t be getting institutionalized backing despite its status as the biggest memecoin in the market.
Despite the backlash, a huge portion of crypto enthusiasts think it’s a big win for zero utility projects, which are still largely popular despite their steep volatility.
The proposed ETF launch follows an expected $DOGE buying spree by the Dogecoin Digital Asset Treasuries (DATs), adding to the bullish momentum around the memecoin.
DOGE price targets $0.50 as ETF momentum builds
Following the ETF news, Dogecoin price hovered around $0.28, with some analysts predicting a breakout.
Crypto trader Ali (@ali_charts) wrote: “Dogecoin $DOGE next move: break $0.29 and we could be looking at a run to $0.50.”
Volume increased alongside bullish momentum, and the proposed ETF may bring new retail and institutional flows into the DOGE market.
DOGE currently ranks as the ninth largest cryptocurrency, with a market capitalization of $36.0 billion, according to CoinMarketCap.
US ETF Market Eyes Expansion
The proposed Dogecoin ETF launch follows earlier speculations around more crypto assets getting the nod from the SEC for an ETF product.
Aside from he launch of Bitcoin and Ethereum ETFs in 2024. Speculations of a potential Solana and Litecoin ETFs have circulated the industry since the turn of the year.
The proposed ETF launch for Dogecoin adds to the growing list of crypto assets. Seeking to diversify their offer in the booming US crypto market.
Dogecoin, the biggest memecoin by trade volume and market capitalization. Currently has a market cap of $36.0 billion, registering as the ninth biggest crypto project in the world.
A proposed ETF would boost retail and institutional investors. And help the credibility of the project, tainted by loud criticisms of the entire memecoin asset class
Conclusion
The Dogecoin ETF by Rex-Osprey has already made history even before the official launch. It remains unclear whether it opens the floodgates for more speculative assets or sets off deeper scrutiny from U.S. regulators.
For now, Dogecoin continues to operate in a dual identity part joke, part billion-dollar asset. And Wall Street appears ready to embrace both.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss. That may occur from investing in or trading. Please do your research before making any financial decisions.
