Dogecoin to Make Wall Street Debut with First DOGE ETF
The introduction of a Dogecoin (DOGE) exchange-traded fund (ETF) could mark a significant milestone, potentially transforming the meme coin into a Wall Street commodity. Recent filings by REX Shares and Osprey Funds with U.S. regulators indicate plans to launch the first ETF providing direct exposure to DOGE, set to debut with the ticker DOJE as early as next week.
Interestingly, these two companies aren’t newcomers to the world of crypto ETFs. Just a short while ago, they introduced a Solana staking fund into the market, utilizing a legal framework based on the Investment Company Act of 1940, also known as the “40 Act.” This same approach is now being adapted for the Dogecoin ETF offering.
According to the filing, the DOJE fund will gain exposure through a subsidiary based in the Cayman Islands, structured to adhere to U.S. law’s stringent compliance requirements. Analysts have noted that while Dogecoin is positioned as the first product ready for launch, the prospectus also mentions potential ETFs linked to other cryptocurrencies like XRP, BONK, TRUMP, Bitcoin, Ethereum, and Solana, hinting at a broader pipeline of ETF products possibly in the works.
The “40 Act” imposes restrictions on U.S. investment funds regarding holding certain assets such as commodities and derivatives. By establishing an offshore subsidiary, ETF issuers can maneuver around these limitations while still offering investors a means to gain exposure to digital assets. The prospectus states that the strategies and risks of the Dogecoin subsidiary are treated as equivalent to those of the main fund to ensure compliance.
This playbook closely mirrors REX and Osprey’s methodology in successfully launching the Solana ETF earlier this year, showcasing their innovative legal approach in a rapidly evolving industry.
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