Dogecoin ETF Approval Expected Next Week

Key Takeaways

• REX-Osprey DOGE ETF (DOJE) is expected to launch as early as next week.

• This would mark the first-ever Dogecoin ETF, providing direct exposure to the memecoin via a Cayman Islands subsidiary.

• The fund operates under the Investment Company Act of 1940, using legal workarounds to comply with U.S. investment laws.

• Other tokens mentioned in the prospectus include XRP, BONK, TRUMP, BTC, ETH, and SOL.

• The SEC is showing increasing openness toward crypto ETFs in 2025.

A Quick Look At The Upcoming Dogecoin ETF

In a bold move reminiscent of their Solana Staking ETF launch in June, REX and Osprey have submitted an effective prospectus with the U.S. Securities and Exchange Commission (SEC).

Source: X (@REXShares)

This new ETF, structured under the Investment Company Act of 1940 (commonly referred to as the ’40 Act), could pave the way for other memecoin-based investment vehicles.

Eric Balchunas noted:

“Looks like Rex is going to launch a Doge ETF via the 40 Act next week. The same filing includes other ETF possibilities tied to XRP, TRUMP, BONK, BTC, ETH, and SOL.”

Understanding The Investment Company Act Of 1940

The ’40 Act governs how investment companies operate, aiming to protect investors through transparency and fair practices.

However, this act typically restricts direct exposure to certain digital assets like commodities and derivatives.

Legal Workarounds: The Cayman Subsidiary Strategy

To bypass these restrictions, the REX-Osprey DOGE ETF will gain exposure to Dogecoin via a subsidiary based in the Cayman Islands, officially named the REX-Osprey DOGE (Cayman) Portfolio S.P.

This strategy mirrors the approach used for the SOL Staking ETF launched earlier in 2025. According to ETF Trends:

“In such cases, the subsidiary is structured to meet the requirements of the ’40 Act, allowing the ETF to gain exposure to these complex assets without violating the direct rules for the parent fund.”

Market Impact & Regulatory Momentum

SEC’s Changing Stance On Crypto ETFs

The SEC, under Chairman Paul Atkins, has shown increasing support for crypto-based investment products in 2025.

In July, the commission approved new rules allowing in-kind creations and redemptions for crypto ETFs, a crucial step for market liquidity and operational efficiency.

How Is Dogecoin Performing?

As of publication, Dogecoin is trading at $0.21, down 4.3% on the day. Despite the dip, the memecoin boasts a market capitalization of $32 billion, keeping it firmly in the top 10 cryptocurrencies by market cap.

Source: CoinGecko

Competing Proposals In The Race

While REX-Osprey is currently leading the race, Grayscale and Bitwise have also filed proposals for Dogecoin-related ETFs, further intensifying the competition in this space.

Additionally, the SEC has opened doors for spot Bitcoin and Ethereum ETFs, as well as options trading on select spot Bitcoin ETPs. These developments signal a maturing regulatory landscape more open to innovative products like a Dogecoin ETF.

FAQ

What is a Dogecoin ETF?

A Dogecoin ETF is an exchange-traded fund designed to give investors exposure to Dogecoin’s price performance without having to hold the cryptocurrency directly.

When will the Dogecoin ETF launch?

The REX-Osprey Dogecoin ETF could launch as soon as next week, pending regulatory approval from the SEC.

How does the ETF gain exposure to Dogecoin?

The fund uses a Cayman Islands-based subsidiary to legally gain exposure to Dogecoin, staying compliant with the U.S. Investment Company Act of 1940.

What is the ticker symbol for the Dogecoin ETF?

The ETF will trade under the ticker “DOJE” on U.S. exchanges.

Who else is trying to launch a Dogecoin ETF?

Apart from REX-Osprey, Grayscale and Bitwise have also submitted proposals to launch their own Dogecoin ETFs.