The first American Dogecoin (DOGE) Traded Fund (ETF) will be launched on Thursday, dividing the votes of the industry between those who call it a breakthrough for the legitimacy of the crypto community and those who reject it as a speculation in a new packaging.
Unlike the FNB bitcoin FNB approved under the ACT Securities of 1933, the REX-OSPREY DOGECOIN ETF (DOJE) obtained approval from the 1940 investment companies law, a framework generally used for common investment funds and diversified ETFs.
The BlackRock Spot Crypto Fund, for example, simply holds Bitcoin (BTC) in Coinbase police custody. Doje wins an exposure rather through a subsidiary and derivatives of the Cayman islands, because the law of 1940 requires diversification and restricts concentration with unique active ingredients.
The beginnings of Crypto ETF are generally celebrated by the industry, but criticism argues that the same fund institutionalizes speculation – while invoicing costs that investors could avoid by buying Dogecoin directly. Some also underline the irony that Dogecoin, which was created as a joke, jumped projects with more tangible use cases at the ETF stage.
Do we need an ETF of Dogecoin?
Dogecoin is a descendant of Bitcoin. It was created in 2013 as a LuckyCoin fork, a Litecoin fork, which is a bitcoin fork. While it started as a joke, he has since become a cryptocurrency among the first 10 by market capitalization.
Embrace for a long time by retail merchants, Dogecoin has also caused the wider category of the same, often criticized for its casino nature. This makes approval for an ETF particularly controversial.
An ETF allows investors to expose themselves to Dogecoin via the stock market, but not everyone sees it.
“These ETFs charge costs out of the charts when you can simply create a Coinbase account in five minutes, buy the token and never be billed a spending ratio,” said Brian Huang, co-founder and CEO of Crypto Management Platform Glider, Cointelegraph.
He added that institutional investors are more likely to prioritize “legitimate” and income generators.
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Dogecoin has raised certain cryptographic investors in millionaires in its history. But its price is in a constant battle against inflation. Dogecoin’s Tokenomics was designed as a satire of the Bitcoin shortage. Instead of a cap of 21 million sides, Dogecoin is unlimited and emits a reward of blocks of 10,000 doors every minute. This means that around 5 billion new parts are struck each year.
During the former same booms, analysts warned that such assets had diverted the capital and attention of more serious blockchain projects. Some see the FNB as reinforcing this problem.
“It is wild to see a serious project of the same at the ETF finish line,” said Cointelegraph Douglas Colkitt, founding contributor to layer 1.
“ETF packaging does not change the fundamentals; It simply allows Wall Street Pump Doge with a right face. ”
Dogecoin does not open a free crypto etf for all
At the end of August, 92 FTE Crypto awaited the decisions of the Securities and Exchange Commission in the United States. The Dogecoin products were among them, alongside other so -called applications such as Le Pengu, the token linked to the grouped penguins of the non -fleeting token brand (NFT).
“Dogecoin may have started as a joke, but it has become a serious Altcoin that has brought real investors and engineers in space,” said Mike Maloney, CEO and Founder of Incyt. “Community engagement is as real for a room as for a stock.”
While criticisms like Colkitt have expressed their frustration as the same at the top of more serious projects, others argue that its success reflects the community dynamic of Crypto. Maja Vujinovic, CEO of digital assets of FG Nexus, told Cointelegraph that Dogecoin to jump other altcoins shows how communities can push assets in regulated structures.
“If Doge is first of all, these are less technical roadmaps and more recognition than the communities themselves can push assets in regulated structures. It is an important signal reacts as much to social momentum as market capitalization,” she said.
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Unlike many altcoins, Dogecoin has often been under the general public projectors. The Tesla CEO tweets, Elon Musk, in 2021, has soaked, and a Department of the US government which he led was even nicknamed the Ministry of Effectiveness of the Government, or DOGE. The token has also endured several bear markets, which gives it a level of resilience and maturity which lacks other same.
“The ETF track will not be free for everyone; liquidity, surveillance and preparation for the guard have always set the bar. But more tokens will find their way in the regulated packaging, which widens the adoption,” added Vujinovic.
On Tuesday, the SEC delayed its decision on the Bitwise Dogecoin FNB, extending the examination window until November 12.
Dogecoin ETF blurs the border between the same and the market
An FNB of Dogecoin obliges the industry to look into whether the adoption of speculation and culture is part of the package.
The skeptics argue that the new fund is leaning too far towards the latter. For Huang, the idea of enveloping a unique token in an ETF is “ridiculous”, the equivalent of the packaging of a alone stock as a diversified product. For him, the packaging of Wall Street hardly makes institutionalize a meme while invoicing the costs of the investors that they could easily avoid by buying Doge directly.
Others thwart this form as much as the function. Vujinovic stresses that an ETF does not modify the code or objective of Dogecoin, but it composes the requirements in terms of childcare, audits and disclosure which add legitimacy for traditional investors.
Colkitt considers development both as a promise and parody. If a same can make it a regulated ETF, then “everything is on the table”. This could open doors to adoption, but also emphasizes how crypto continues to muddle the border between revolutionary financial innovation and pure entertainment.
In this sense, Doje does not respond if the memes belong to serious markets, but this shows that regulators and investors are ready to treat them as if they did.
Rex-Osprey has more FNB same in the pipeline, dry deposits describing products related to official Trump (Trump) and Bonk (Bonk), as well as Altcoins XRP (XRP) and Solana (floor).
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