REX-Osprey may launch the first DOGE ETF next week, code DOJE.

Following the launch of the Solana stake ETF this summer, REX Shares and Osprey Funds have once again caught the market's attention—latest submitted documents show that both parties plan to launch the first exchange-traded fund (ETF) that directly invests in DOGE as early as next week, with the code DOJE. If realized, this will be the first DOGE ETF in the U.S. market, potentially opening a new chapter for encryption asset investment products.

The first DOGE ETF may debut

According to the prospectus submitted to the U.S. Securities and Exchange Commission (SEC) on Wednesday, the REX-Osprey DOGE ETF will obtain the price performance of DOGE by investing in the Cayman Islands-registered subsidiary REX-Osprey DOGE (Cayman) Portfolio SP.

Bloomberg industry research analyst Eric Balchunas pointed out on the X platform that the product will operate under the framework of the Investment Company Act of 1940 (40 Act), meaning it will adopt a compliant fund structure to invest in encryption assets.

40 Act and ETF Structure

The 1940 Investment Company Act aims to protect investors from conflicts of interest and fraud, imposing strict limitations on the investment targets of funds.

ETF Trends explains that if an ETF invests in restricted assets (such as encryption or derivatives), it can hold assets in compliance by establishing a subsidiary located in a specific jurisdiction (such as the Cayman Islands) to meet regulatory requirements.

The prospectus of the REX-Osprey DOGE ETF clearly states that the investment strategy and risks of the subsidiary will directly constitute the core operating model of the fund.

SEC's Attitude Shift and Market Competition

Under the leadership of Chairman Paul Atkins, the SEC has recently become increasingly open to the attitude towards cryptocurrency ETFs.

July: The SEC voted to approve participants to establish and redeem cryptocurrency ETFs in physical form.

Subsequently: Approval of the listing applications for spot Bitcoin and Ethereum ETFs, as well as some spot Bitcoin ETP options.

Currently, there are over 90 encryption-related ETF proposals awaiting approval in the market, and Grayscale and Bitwise are also vying to launch a DOGE ETF, indicating fierce competition in the field.

DOGE Market Status

As of September 5, the price of DOGE has dropped 4.3% to $0.21, with a market capitalization of approximately $32 billion. Although short-term prices are under pressure, the launch of the ETF may bring new capital inflows and investment demand for DOGE, especially at the institutional investor level.

Conclusion

If the REX-Osprey DOGE ETF successfully lists next week, it will become the first ETF in the U.S. market to directly track DOGE, potentially sparking a new wave of encryption asset ETFs. For investors, this not only means more diverse investment options but may also change the status of DOGE in the mainstream financial market.