ETF issuer REX Shares has announced the launch of the first-ever fund providing direct access to Dogecoin, which may offer new opportunities for investors.
Dogecoin's Wall Street Debut
Bloomberg ETF analyst Eric Balchunas noted that REX appears ready to launch its Dogecoin ETF as early as next week under the ’40 Act, similar to its recently launched SSK, which offers investors exposure to Solana. According to Balchunas, Dogecoin is likely to be the first product rolled out, given the newly filed effective prospectus.
Signs of Dogecoin's Rebound
Over the last month, Dogecoin climbed more than 8%, reaching $0.216. This uptick was partly driven by CleanCore Solutions’ new Dogecoin treasury. The Nebraska-based manufacturer of aqueous ozone cleaning systems has become the first public company to hold DOGE as its primary treasury reserve. Notably, analyst Ali Martinez spotted that the TD Sequential indicator flashed a buy signal for DOGE, indicating potential exhaustion of selling pressure.
Dogecoin Market and Its Risks
The fund's investments in DOGE and DOGE futures contracts expose it to risks associated with investing in DOGE. The prices of these derivatives are substantially based on the price of DOGE, which is a relatively new innovation and subject to unique and substantial risks, including rapid price swings and uncertainty.
The launch of the Dogecoin ETF by REX Shares opens new opportunities for investors, but it comes with a high degree of risks associated with the volatility of the cryptocurrency market.
