Dogecoin ETF Approved: U.S. Greenlights DOJE Under 1940 Act

First Dogecoin ETF Approved in the U.S.

The United States is poised to launch its first memecoin exchange-traded fund (ETF) this Thursday, marking a significant expansion in regulated crypto investment products. This follows the successful launch of Bitcoin and Ether ETFs last year.

Bloomberg ETF analyst Eric Balchunas announced on Tuesday that the Rex-Osprey Doge ETF (tDOJE) has received approval from the U.S. Securities and Exchange Commission (SEC).

"Pretty sure this is the first-ever US ETF to hold something that has no utility or purpose,” Balchunas commented in a social media post.

Balchunas had previously hinted at the potential launch of this Dogecoin ETF, operating under the Investment Company Act of 1940. This framework differs from the Securities Act of 1933, typically used for grantor trusts holding physical commodities or derivatives.

Implications for Crypto Markets

The approval of the DOJE ETF could signal increased acceptance of memecoins within traditional financial markets. However, the inherent volatility and speculative nature of Dogecoin should be considered by potential investors.

This is a developing story; further details will be added as they become available.