What A Dogecoin ETF Approval Means For The Future Of Crypto

The first Dogecoin ETF is set to go live next week, becoming the first memecoin ETF ever to launch. Market experts have shared their opinions on what this could mean for the future of crypto, as well as insights into how the fund would operate. 

Meme Coin ETF Era Kicks Off With First Dogecoin ETF

In an X post, Bloomberg analyst Eric Balchunas stated that the meme coin ETF era is about to kick off as REX-Osprey’s Dogecoin ETF (DOJE) is set to launch under the 40 Act. He added that this is likely the first-ever U.S. ETF to hold something that has no utility on purpose. The analyst noted that there are also other DOGE ETF filings under the 33 Act, which are awaiting the SEC’s approval, meaning there are more meme coin ETFs on the horizon. 

As the Bloomberg analyst pointed out, the Dogecoin ETF will be the first U.S. fund without utility, given that DOGE is a meme coin that originated as a joke. Balchunas had doubled on his “utility” comment as he questioned in another X post what DOGE’s utility was, seeing as it literally started out as a joke. 

Besides lacking any utility, it is worth mentioning that a Dogecoin ETF will differ from most altcoin ETFs, as DOGE is a proof-of-work (PoW) coin, just like Bitcoin. As such, there is also no staking utility that could bring in yields for investors like proof-of-stake (PoS) coins like Ethereum and Solana. This further strengthens the argument that DOGE lacks any utility. 

However, Incyt CEO Mike Maloney said that Dogecoin may have started as a joke, but it has become a serious altcoin that has attracted real investors and engineers to the space. He added that community engagement is as real for a coin as it is for a stock. 

There are notable projects on the Dogecoin network that have moved to provide real utility for the meme coin. One of them is DogeOS, whose CEO, Jordan Jefferson, remarked that Dogecoin started as a joke and now, Wall Street is finally getting it. 

How REX-Osprey’s DOGE ETF Will Operate

In an X post, Bloomberg analyst James Seyffart provided insights into how the REX-Osprey Dogecoin ETF will operate, considering that it was filed under the 33 Act, which is the normal route. He noted that the fund is slightly different from the spot Bitcoin & Ethereum ETFs, which everyone is accustomed to. 

REX-Osprey’s Dogecoin ETF will spot DOGE but not for 100% of its holdings, like the Bitcoin and Ethereum ETFs, which hold 100% BTC and ETH. Seyyfart revealed that the DOGE fund will hold a combination of spot and other spot ETFs. As such, it will still offer spot exposure to the meme coin, but it can also use derivatives, too. The DOGE ETF was scheduled to launch this week, but the Bloomberg analyst has revealed that it has been delayed until next week. 

At the time of writing, the Dogecoin price is trading at around $0.26, up over 4% in the last 24 hours, according to data from CoinMarketCap.