Dogecoin Jumps as ETF Filing with SEC Sparks Investor Frenzy

Summary

• Dogecoin rose 8% in 24 hours to $0.2371, with a market cap above $35 billion.
• REX and Osprey Funds filed a Dogecoin ETF under the 40 Act, awaiting SEC approval.

Dogecoin’s price surged on Monday as speculation intensified over a potential first-ever Dogecoin exchange-traded fund in the United States. The token climbed 8% in the past 24 hours, trading at $0.2371 with a market capitalization exceeding $35 billion.

REX and Osprey Funds File for Dogecoin ETF Under 40 Act

The rally was fuelled by the acknowledgement that REX Shares, with the help of Osprey Funds, has submitted an effective prospectus regarding a Dogecoin ETF to the Securities and Exchange Commission. According to Bloomberg ETF analyst Eric Balchunas, the product may be approved as early as this week, and the ETF will operate under the Investment Company Act of 1940.

This 40 Act framework allows issuers to bypass the more complicated and time-intensive approval process for crypto ETFs, including S-1 or 19b-4 filings. REX previously deployed the framework when it introduced a Solana-linked fund earlier this year. According to the president of ETF Store, Nate Geraci, the current week in crypto-linked funds was described as wild, as the number of filings and reviews was high.

The potential fund would provide the ticker of $DOJE, which the Foreside Fund Service LLC would handle. In its filing, REX recognized Dogecoin’s high volatility and raised serious risks to investors. DOGE has, however, continued to register returns of almost 10 percent over the last 24 hours, exceeding other large-cap digital assets.

Institutional Access Could Transform Dogecoin’s Market Role

A licensed ETF would be a step forward in Dogecoin, which has traditionally been bought and sold on its cultural credibility and celebrity endorsement, most notably by Tesla chief executive Elon Musk. The ETF would allow institutional legitimacy by enabling controlled access to the meme token through the traditional U.S. securities exchanges and a streamlined entry point for the retail trader.

Bitwise Asset Management has also attempted to approve a Dogecoin ETF. Still, its application was pending at the time of writing, following an extension of its review by the SEC in June. In case of REX success, it will become a part of a limited number of crypto-linked ETFs, such as Bitcoin and Ethereum spot products, which were approved in 2024.

The mainstream acceptance of Dogecoin, supported by Musk’s publicity and the fact that it is regarded as a cultural asset, has, in the past, distinguished it from other altcoins. According to reports, Musk’s lawyer, Alex Spiro, has ties to a company that was seeking 200 million dollars to invest in Dogecoin, which further establishes its status in the crypto footprint.

In the meantime, traders are looking over its shoulders as the SEC deliberates on its verdict. The Dogecoin ETF would get an open door to further institutional participation, which the token has found hard to achieve since its creation.