The first US Dogecoin ETF is set to launch this week, sparking heated debate across the crypto industry. Supporters call it a milestone for adoption, while critics dismiss it as speculation in a shiny new wrapper. The launch highlights how culture-driven cryptocurrencies are reshaping the traditional finance landscape, even as doubts about their fundamentals persist.
A Different Kind of Approval
Unlike Bitcoin spot ETFs, which were approved under the Securities Act of 1933 and simply hold crypto in custody, the Rex-Osprey Dogecoin ETF (ticker: DOJE) was approved under the Investment Company Act of 1940. This framework is more commonly associated with mutual funds and diversified ETFs, requiring exposure to multiple assets rather than concentration in a single one.
Instead of directly holding Dogecoin, DOJE gains exposure through a Cayman Islands subsidiary and derivatives contracts. While this structure satisfies regulatory diversification rules, it raises questions about whether investors are getting a clean play on Dogecoin or a more complex financial product layered with fees.
Dogecoin climbs ahead of its US ETF debut. Source: CoinGecko
Crypto ETF debuts are usually celebrated, but this one has sharply divided industry voices. For some, the fact that a memecoin has beaten other altcoins to an ETF launch underscores the unpredictable dynamics of crypto markets.
The Speculation Debate
Dogecoin’s origins as a joke have long shaped its identity. Created in 2013 as a fork of Luckycoin (itself a fork of Litecoin and Bitcoin), Dogecoin started as satire but grew into one of the world’s top ten cryptocurrencies by market capitalisation. Retail traders embraced it, and the memecoin phenomenon was born.
But Dogecoin’s tokenomics diverge sharply from Bitcoin. Instead of scarcity, Dogecoin has an unlimited supply with a constant block reward of 10,000 DOGE per minute, about 5 billion new coins minted every year. That inflationary design means its price is in constant tension with supply growth.
A Dogecoin ETF is set to debut on Thursday, while spot crypto ETF applicants wait on the sidelines. Source: Eric Balchunas
Critics argue that packaging Dogecoin into an ETF does not change its fundamentals. Douglas Colkitt, founding contributor at blockchain project Fogo, said:
“An ETF wrapper doesn’t change the fundamentals; it just lets Wall Street pump DOGE with a straight face.”
Others, like Brian Huang of crypto management platform Glider, highlight the cost factor. Buying DOGE directly on exchanges like Coinbase is cheap and simple, while ETFs charge ongoing management fees.
“These ETFs are charging off-the-charts fees when you could simply create a Coinbase account in five minutes,” Huang said.
For skeptics, the ETF is less about innovation and more about institutionalising casino-like speculation.
Community Power and Legitimacy
Yet many see the ETF as proof that community-driven coins can command serious attention. Dogecoin’s cultural reach, amplified by Tesla CEO Elon Musk’s tweets and frequent mainstream headlines, has given it staying power that other memecoins lack. It has also survived multiple bear markets, adding resilience to its reputation.
Mike Maloney, CEO of Incyt, said:
“Dogecoin may have started as a joke, but it’s become a serious altcoin that’s brought real investors and engineers into the space.”
Musk calls Dogecoin a “hustle” in a 2021 comedy skit. Source: Saturday Night Live
Maja Vujinovic, CEO of Digital Assets at FG Nexus, added that Dogecoin’s ETF milestone is not about technical roadmaps but social momentum:
“If DOGE is first, it’s less about technical roadmaps and more about acknowledging that communities themselves can push assets into regulated structures. Regulators are responding to social momentum as much as market cap.”
This community legitimacy, rather than token design, may explain why Dogecoin is the first memecoin to reach the ETF stage.
Implications for the Market
The launch of DOJE does not mean regulators will greenlight every memecoin ETF. Liquidity, custody readiness and market surveillance requirements remain barriers. But with over 90 crypto ETP applications currently awaiting SEC decisions, Dogecoin’s debut signals that more assets could follow.
The development blurs the line between meme and market. On one side are critics who see the ETF as a parody of financial innovation. On the other are supporters who argue that bringing memecoins into regulated wrappers adds legitimacy, transparency and access for mainstream investors.
Vujinovic sees it as both inevitable and constructive:
“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.”
Meanwhile, the SEC has delayed a decision on Bitwise’s Dogecoin ETF until November, signalling regulators remain cautious even as they test the waters.
Between Speculation and Adoption
The Dogecoin ETF encapsulates crypto’s ongoing identity crisis: is it about transforming finance or fuelling speculative manias? DOJE may not answer that question, but it shows regulators and investors are willing to treat memecoins seriously, at least structurally.
For some, this represents progress. For others, it highlights the absurdity of Wall Street embracing an asset born as a joke. What is clear is that Dogecoin has crossed yet another milestone, proving once again that memes and markets are becoming inseparable in the world of digital assets.
