21Shares has launched the first Dogecoin-backed spot exchange-traded fund in the United States, marking the first regulatory approval for a coin-based ETF product, according to the company’s announcement.
Summary
- 21Shares has launched the first spot Dogecoin ETF in the United States, developed with House of Doge, marking the first SEC approval of a coin-based ETF.
- The product offers institutional and retail investors direct exposure to Dogecoin through traditional brokerage accounts, without directly owning the token.
- The launch follows growing regulatory acceptance of crypto ETFs in the United States, following earlier one-off approvals for Bitcoin and Ethereum.
The ETF was developed in collaboration with House of Doge, described as the unofficial legal entity of the token. The launch represents the first example of a Dogecoin investment vehicle receiving approval from the Securities and Exchange Commission for trading in the United States.
The development provides institutional investors with direct access to Dogecoin exposure through traditional brokerage accounts. ETF structures allow investors to gain exposure to cryptocurrencies without directly purchasing and storing digital assets.
Dogecoin has been trading within a set price range over the past few sessions, according to market data. The cryptocurrency established support levels from which prices repeatedly bounced, while facing resistance at higher price levels.
Market analysts have released various price projections for Dogecoin following the ETF’s launch, with targets ranging from modest short-term gains to more substantial long-term appreciation. Some observers have raised the possibility of the token reaching price parity with the US dollar in the coming years, although these projections remain speculative.
The cryptocurrency enjoys the support of an active online community and has gained recognition beyond digital asset markets. Dogecoin was originally created as a satirical cryptocurrency in 2013, but has since become one of the largest digital assets by market capitalization.
ETF launches for cryptocurrency assets have historically attracted institutional capital inflows, according to industry data. Bitcoin and Ethereum spot ETFs launched in previous periods generated significant trading volumes in their first weeks of operation.
The approval of a Dogecoin ETF follows a broader trend of regulatory acceptance of cryptocurrency investment products in the United States. The SEC has gradually expanded its approval of cryptocurrency spot ETFs beyond Bitcoin, which received the first such approval in early 2024.
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