On Friday, Dogecoin’s price surged by nearly 4%, climbing to $0.2603, despite the anticipated launch of a U.S. exchange-traded fund (ETF) linked to the memecoin being postponed once again. This unexpected increase coincided with an announcement from Bloomberg’s senior ETF analyst Eric Balchunas, who disclosed that the debut of the U.S. DOGE ETF has been delayed beyond its expected date.
Initially, the Rex-Osprey DOGE ETF (DOJE) was slated for launch on September 12, aligning with other notable ETFs such as Bonk (BONK), XRP (XRP), Bitcoin (BTC), and Trump Official (TRUMP). However, Balchunas indicated that the listing is now expected to be pushed back to the middle of next week, potentially until Thursday. The delay comes despite the DOJE ETF having recently gained approval under the Investment Company Act of 1940, a regulatory framework generally applied to mutual funds and diversified ETFs.
This particular approval distinguishes the DOJE ETF from Bitcoin ETFs, which are typically sanctioned under the Securities Act of 1933. Balchunas noted that the firm behind the ETF has not revealed the reasoning for the delay, and he believes this ETF will have a minimal impact on Dogecoin’s price movements. He explained that unlike Bitcoin, which attracted investors unable to engage with crypto directly, those interested in Dogecoin are likely to already possess crypto exchange accounts.
Despite the current setback, Balchunas expressed an optimistic outlook, forecasting the launch of four to five Dogecoin ETFs within the upcoming months of October or November. According to him, the proliferation of DOGE ETFs may significantly influence the cryptocurrency’s market dynamics.
Adding another layer of complexity, Balchunas clarified that the DOJE ETF is distinct from many other crypto ETFs that have made their debut. He explained that it does not directly hold Dogecoin, instead relying on a subsidiary based in the Cayman Islands and utilizing derivatives. This structure was necessitated by requirements of the 1940 Act, which aims to prevent asset concentration and mandates diversification.
This unique approval has stirred both interest and skepticism within the investment community. Critics argue that creating a fund solely for a memecoin promotes speculation, particularly when investors can bypass fees by purchasing Dogecoin directly.
In a sign of growing institutional interest, Dogecoin has garnered attention from significant corporate players. Reports have surfaced indicating that CleanCore Solutions, a company specializing in aqueous ozone cleaning systems, has made substantial investments in Dogecoin, acquiring $130 million worth this week and nearing its $1 billion DOGE treasury target. This move follows CleanCore’s announcement of a plan to raise $175 million through private placement aimed at acquiring additional Dogecoin.
Moreover, related news emerged this month regarding the Trump family-linked media corporation Thumzup, which has announced its intention to acquire 3,500 Dogecoin mining rigs. The company referred to Dogecoin as “one of the most widely held cryptocurrencies,” suggesting a rising interest in the asset among institutional investors.
As the market watches closely, the implications of the delayed DOGE ETF and the growing institutional interest in Dogecoin may signify a turning point for the memecoin’s valuation and its standing in the broader cryptocurrency market.
