Dogecoin Price Rises Despite ETF Delay
Dogecoin’s price climbed on Friday, even though the launch of a US exchange-traded fund (ETF) tied to the memecoin was postponed again.
Data from CoinMarketCap shows Dogecoin (DOGE) rose nearly 4% in the past 24 hours, trading at around $0.2603. Bloomberg senior ETF analyst Eric Balchunas confirmed that the US Dogecoin ETF, called the Rex-Osprey DOGE ETF (DOJE), will not launch as planned on Sept. 12 and may be delayed until next week.
The DOJE ETF recently won approval under the Investment Company Act of 1940, which is usually used for mutual funds. This makes it different from Bitcoin ETFs, which are approved under the Securities Act of 1933. Unlike spot Bitcoin ETFs that directly hold BTC, this Dogecoin ETF uses a Cayman Islands-based subsidiary and derivatives, since the 1940 Act requires diversification.
Balchunas said the reason for the delay has not been disclosed by the company behind the ETF. He also noted that the ETF is unlikely to have a big impact on Dogecoin’s price, since most people interested in DOGE already use crypto exchanges. However, he expects more DOGE ETFs — around four or five — to launch in October or November, which could influence the market more.
This Dogecoin ETF is also unique because, according to Balchunas, it might be the first-ever US ETF to hold an asset with “no real utility or purpose.” While some see ETF approval as a positive step for crypto, critics argue that a memecoin ETF only fuels speculation and adds unnecessary fees compared to simply buying DOGE directly.
Meanwhile, Dogecoin continues to gain institutional interest. CleanCore Solutions, a maker of cleaning systems, bought $130 million worth of DOGE this week, reaching half of its 1 billion Dogecoin treasury goal. The company recently raised $175 million to fund further DOGE purchases.
Additionally, Trump family-linked media company Thumzup announced plans to buy 3,500 Dogecoin mining rigs, calling the memecoin “one of the most widely held cryptocurrencies.”
