REX Shares and Osprey Funds are preparing to launch the world's first exchange-traded fund (ETF) that will provide direct access to Dogecoin. Bloomberg Intelligence analyst Eric Balchunas stated that the ETF could begin trading as early as next week.
Description of Dogecoin ETF
The REX-Osprey DOGE ETF will trade under the ticker DOJE. The company filed a prospectus not only for Dogecoin but also for ETFs tied to XRP, BONK, TRUMP, BTC, ETH, and SOL.
ETF Structure and Legal Compliance
According to the Investment Company Act of 1940, known as the 40 Act, mutual funds are regulated to protect investors from conflicts of interest and fraud. According to ETF Trends, ETFs intending to invest in assets restricted under this law may invest through subsidiaries established in a different jurisdiction, such as the Cayman Islands. REX-Osprey's prospectus states that the DOJE ETF will adopt this structure, gaining exposure to Dogecoin through the REX-Osprey DOGE (Cayman) Portfolio SP.
Future Plans of the Company
Eric Balchunas mentioned, "Rex will most likely launch the Doge ETF under the 40 Act next week. Doge appears to be in the lead, but the prospectus also includes Trump, XRP, and Bonk, and there is a possibility that these will also appear in the future."
The launch of a Dogecoin ETF could be a significant event in financial markets, opening new opportunities for investors in crypto assets.
