A significant shift in the U.S. cryptocurrency investment landscape is set to occur on September 11, 2025, with the anticipated launch of the REX-Osprey DOGE ETF. This marks a pivotal moment as it introduces a spot Dogecoin exchange-traded fund, notably bypassing the conventional regulatory approval process of the U.S. Securities and Exchange Commission (SEC). The strategy employed by REX Shares and Osprey Funds leverages the Investment Company Act of 1940, typically associated with mutual funds, rather than the Securities Act of 1933, which governs most other exchange-traded products, thereby opening a new avenue for digital asset investment.
Confirming this development, Bloomberg Intelligence analyst Eric Balchunas highlighted that the fund, trading under the ticker DOJE, will operate as a pooled investment vehicle. This regulatory maneuver enables a faster market entry compared to the prolonged scrutiny faced by other crypto ETF applications. The investment operations for this product are reportedly managed by REX-Osprey DOGE (Cayman) Portfolio S.P., indicating an offshore structure for the underlying assets.
The approach of registering under the 1940 Act positions the Dogecoin ETF similarly to traditional equity and bond ETFs. Ganesh Mahidhar, an investment specialist at Further Ventures, commented on this strategy, suggesting that such regulation may offer enhanced investor protection by mandating a registered investment structure for the special purpose vehicle (SPV) offering the fund. REX Shares and Osprey Funds previously utilized this same framework for the successful launch of a spot Solana-ETF and have also applied for a BNB-ETF, demonstrating a consistent strategy to navigate the regulatory environment.
This launch is drawing considerable attention within financial circles, particularly given Dogecoin’s origins as a meme coin. Eric Balchunas expressed the unique nature of this fund, stating, “Almost certainly it’s the first ever U.S. ETF to hold something that’s intentionally without any utility.” Despite this, the CEO of DogeOS, Jordan Jefferson, views the ETF’s approval as a validation, remarking in a statement to CoinDesk that it signifies Wall Street’s growing recognition of Dogecoin’s community, culture, and accessibility. This sentiment underscores a broader trend of institutional investors engaging with digital assets previously considered unconventional.
The announcement has corresponded with positive market movement for Dogecoin, which saw a weekly increase of 12.2%. This market reaction, alongside the ETF’s impending launch, occurs while numerous other issuers, whose products are registered under the Securities Act of 1933, continue to await SEC approval for their respective spot altcoin ETFs. However, not all analysts anticipate a widespread market rally; James Seyffart, a colleague of Balchunas, has voiced skepticism that the approval of altcoin-based funds will necessarily trigger a traditional “altseason,” suggesting a more nuanced impact on the broader cryptocurrency market.
Maxwell Reed is the first editor of Cryptovista360. He loves technology and finance, which led him to crypto. With a background in computer science and journalism, he simplifies digital currency complexities with storytelling and humor. Maxwell began following crypto early, staying updated with blockchain trends. He enjoys coffee, exploring tech, and discussing finance’s future. His motto: “Stay curious and keep learning.” Enjoy the journey with us!