A Dogecoin ETF could be authorized this week based on the current state of applications. Proposals like REX Shares/Osprey (DOJE) and Grayscale’s filing (GDOG) are active, and the pathway under the Investment Company Act of 1940 facilitates faster launches. However, the SEC could still delay or postpone the decision.
Regulatory Path and Status of Applications
A fund under the 1940 Act bypasses part of the lengthy S-1 and 19b-4 process, reducing paperwork but not SEC oversight.
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REX Shares/Osprey is a candidate for a spot product called DOJE.
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Grayscale is working on a spot ETF under the ticker GDOG.
The SEC has delayed decisions on other altcoin ETFs, so the timeline may change.
What is the Investment Company Act of 1940?
The Investment Company Act of 1940 is a U.S. federal law regulating investment companies, such as mutual funds and ETFs. It sets strict requirements regarding asset custody, valuation, disclosure, and capital structure, aiming to protect investors. Funds registered under this act must comply with rigorous rules that ensure closer SEC oversight, providing greater legal protections for investors.
Factors That Could Support a Quick Launch
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Operational advantage: favors the issuer that first meets custody and settlement requirements.
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Legal pathway under the 1940 Act: shortens processes though does not eliminate review.
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Market pressure: high probabilities on predictive platforms and institutional demand increase incentives for an early decision.
Impact, Liquidity, Adoption, and Risks
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A regulated ETF would provide traditional investors access to Dogecoin without wallets or exchanges, increasing liquidity.
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Comparison with Bitcoin ETFs is not direct: Dogecoin’s market capitalization and depth amplify volatility after approval.
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Factors like spreads, custody, and the market makers’ ability to arbitrage are important for investors.
Including a speculative token in a traded vehicle raises questions about investor protection and the possibility of market manipulation. The institutionalization of meme coins reignites debates over financial sovereignty and the need to balance a free crypto ecosystem with regulations that protect retail investors.
Conclusion
If the SEC does not postpone the decision and conditions are met, a Dogecoin ETF could launch this week. Its approval would be a milestone in the institutionalization of crypto assets, with immediate effects on liquidity, market perception, and increased regulatory scrutiny.
