Rex-Osprey’s newly launched DOJE ETF has made a noteworthy debut, achieving substantial trading volume on its opening day, positioning it among the top five ETF rollouts this year. The DOJE ETF, recognized as the first U.S. spot Dogecoin ETF, generated approximately $17 million in trading volume, reflecting significant market interest.
Following this successful launch, the issuer has taken steps towards expanding its offerings by filing with the SEC for a leveraged ETF product. The proposed REX DOJE Growth & Income ETF is designed to provide investors with leveraged exposure ranging from 105% to 150% of the daily price return of Dogecoin (DOJE). Unlike conventional ETFs, which typically focus on long-term investment strategies, the filing emphasizes the fund’s intent to produce daily leveraged investment results, making it a potentially riskier option for investors.
The strategy of the REX DOJE Growth & Income ETF is multifaceted. It will consist of three key components: leveraged long exposure to the underlying DOJE ETF, a covered call strategy to generate income, and investments in short-term treasuries or money market funds. The primary goal of this fund is to provide weekly distributions to investors, while also aiming for daily returns that reflect an increase of 1-1.5 times the performance of the DOJE.
Rex-Osprey has made it clear that this type of leveraged investment carries unique risks not typical of other exchange-traded funds. The prospectus highlights that the fund is meant for knowledgeable investors who have an understanding of the implications of seeking daily leveraged results and are equipped to monitor their investments closely. Investors are warned that the fund could incur losses even during a favorable upward trend in Dogecoin if the return remains flat over multiple days.
Currently, Dogecoin itself has seen a decline of 6% in the past 24 hours, trading at $0.265. Despite this recent downturn, the leading meme coin has shown resilience, with a notable increase of over 22% in the past month, although it still remains approximately 64% below its all-time high of $0.73 reached in 2021.
In conjunction with the DOJE ETF debut, Rex-Osprey also launched its XRP ETF, which experienced even greater market enthusiasm, closing in on nearly $38 million in trading volume, making it the standout among new fund rollouts this year. This surge in demand demonstrates an increasing eagerness among investors to engage with cryptocurrency-related exchange-traded products.
