The first US Dogecoin ETF sparks debate over whether it’s a milestone for adoption or the institutionalization of speculation.
Analysis
The first US Dogecoin () exchange-traded fund (ETF) is set to launch Thursday, dividing industry voices between those calling it a breakthrough for crypto’s community-driven legitimacy and those dismissing it as speculation in a new wrapper.
Unlike Bitcoin ETFs approved under the Securities Act of 1933, the Rex-Osprey Dogecoin ETF (DOJE) won , a framework typically used for mutual funds and diversified ETFs.
BlackRock’s spot crypto fund, for instance, simply holds Bitcoin () in Coinbase custody. DOJE instead gains exposure through a Cayman Islands subsidiary and derivatives since the 1940 act requires diversification and restricts single-asset concentration.
Crypto ETF debuts are usually , but critics argue that a memecoin fund institutionalizes speculation — while charging fees that investors could avoid by buying Dogecoin directly. Some also point to the irony that Dogecoin, which was created as a joke, has leapfrogged projects with more tangible use cases to the ETF stage.
Do we need a Dogecoin ETF?
Dogecoin is a . It was created in 2013 as a fork of Luckycoin, a fork of Litecoin, which is a fork of Bitcoin. While it began as a joke, it has since grown into a top-10 cryptocurrency by market capitalization.
Long embraced by retail traders, Dogecoin also spawned the broader memecoin category, often criticized for its casino-like nature. That makes its approval for an ETF especially controversial.
An ETF lets investors gain exposure to Dogecoin through the stock market, but not everyone sees the point.
“These ETFs are charging off-the-charts fees when you could simply create a Coinbase account in five minutes, buy the token and never be charged an expense ratio,” Brian Huang, co-founder and CEO of crypto management platform Glider, told Cointelegraph.
He added that institutional investors are more likely to prioritize “legitimate” and revenue-generating tokens.
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Dogecoin has elevated some . But its price is in a constant battle with inflation. Dogecoin’s tokenomics were designed as a satire of Bitcoin’s scarcity. Instead of a 21-million-coin cap, Dogecoin is unlimited and issues a 10,000-DOGE block reward every minute. That means about 5 billion new coins are minted yearly.
During past memecoin booms, analysts warned that such assets diverted capital and attention from more serious blockchain projects. Some see the ETF as reinforcing that problem.
“It’s wild to see a memecoin front-run serious projects to the ETF finish line,” Douglas Colkitt, a founding contributor at layer-1 blockchain Fogo, told Cointelegraph.
“An ETF wrapper doesn’t change the fundamentals; it just lets Wall Street pump DOGE with a straight face.”
Dogecoin doesn’t open up a crypto ETF free-for-all
By the end of August, 92 crypto ETPs in the US. Dogecoin products were among them, alongside other , the token tied to the non-fungible token (NFT) brand Pudgy Penguins.
“Dogecoin may have started as a joke, but it’s become a serious altcoin that’s brought real investors and engineers into the space,” said Mike Maloney, CEO and founder of Incyt. “Community engagement is as real for a coin as it is for a stock.”
While critics like Colkitt expressed frustration that a memecoin is front-running more serious projects, others argue its success reflects crypto’s community dynamics. Maja Vujinovic, CEO of Digital Assets at FG Nexus, told Cointelegraph that Dogecoin leapfrogging other altcoins shows how communities can push assets into regulated structures.
“If DOGE is first, it’s less about technical roadmaps and more about acknowledging that communities themselves can push assets into regulated structures. That’s an important signal regulators are responding to social momentum as much as market cap,” she said.
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Unlike many altcoins, Dogecoin has often been in the mainstream spotlight. Tesla CEO Elon Musk’s tweets in 2021 , and a US government department he once led was even . The token has also endured multiple bear markets, giving it a level of resilience and maturity that other memecoins lack.
“The ETF pathway won’t be a free-for-all; liquidity, surveillance and custody readiness still set the bar. But more tokens will find their way into regulated wrappers, which broadens adoption,” Vujinovic added.
On Tuesday, the SEC , extending the review window to Nov. 12.
Dogecoin ETF blurs the line between meme and market
A Dogecoin ETF forces the industry to confront whether embracing speculation and culture is part of the package.
Skeptics argue the new fund leans too far toward the latter. For Huang, the idea of wrapping a single token in an ETF is “ridiculous,” the equivalent of packaging a lone stock as a diversified product. To him, the Wall Street wrapper does little more than institutionalize a meme while charging investors fees they could easily avoid by buying DOGE directly.
Others counter that form matters as much as function. Vujinovic points out that an ETF doesn’t alter Dogecoin’s code or purpose, but it does layer in custody, audits and disclosure requirements that add legitimacy for mainstream investors.
Colkitt sees the development as both promise and parody. If a memecoin can make it into a regulated ETF, then “anything is on the table.” That could open doors for adoption but also highlights how crypto continues to blur the line between breakthrough financial innovation and pure entertainment.
In that sense, DOJE doesn’t answer whether memes belong in serious markets, but it shows that regulators and investors alike are willing to treat them as if they do.
Rex-Osprey has more memecoin ETFs in the pipeline, with outlining products tied to Official Trump () and Bonk (), along with altcoins XRP () and Solana ().
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