Key Points to Remember
REX Shares is gearing up to introduce the very first Dogecoin ETF, utilizing the more efficient framework of the 1940 Act. While this move has the potential to invigorate market enthusiasm, Dogecoin’s value is currently confined within a certain price range.
Dogecoin (DOGE) is potentially on the verge of welcoming its inaugural ETF, and the path to its introduction is anything but conventional.
REX Shares intends to list this ETF under the Investment Company Act of 1940, generally known as the ’40 Act – a regulatory avenue typically used for bond and stock ETFs, rather than cryptocurrencies characterized by high volatility like DOGE. This detail carries significant weight, particularly given that the ’40 Act provides inherent safeguards for investors and a more direct route through regulatory approvals compared to the standard S-1 filing.
With the possibility of its launch being just a week away, could this unconventional maneuver inject new upward momentum into Dogecoin’s price?
The Anticipated DOGE ETF!
The Dogecoin ETF has the potential to make its debut in the US markets as soon as the upcoming week. Bloomberg analyst Eric Balchunas pointed out REX Shares’ efforts in a post on X (formerly Twitter).
“It seems that Rex is planning to launch a Doge ETF through the ’40 Act, similar to $SSK, next week. This is based on the tweet below and the fact that they’ve recently filed an effective prospectus.”
He highlighted that REX has submitted an effective prospectus following the Investment Company Act of 1940—the same legal structure that governs conventional ETFs, such as those tracking bonds or stocks.
In their official filing, REX acknowledged the potential risks, cautioning that Dogecoin is still subject to notable volatility and unpredictability. This serves as a reminder that while the ETF’s launch is innovative, the price could still fluctuate considerably in the near future.
Bypassing the S-1 Process
While the majority of cryptocurrency ETFs navigate the standard S-1 and 19b-4 filing procedures, REX Shares is taking a different route via the ’40 Act – A method they’ve previously employed for their Solana staking ETF.
In fact, Nate Geraci, President of the ETF Store, has previously described this approach as “a regulatory workaround,” since it avoids the typical delays and obstacles.
Source: X
In contrast to competitors like 21Shares, Bitwise, and Grayscale, who are still awaiting SEC decisions regarding their Dogecoin ETF applications, REX is progressing at a more accelerated pace.
REX Shares has also registered a ’40 Act ETF linked to tokens inspired by Donald Trump. Therefore, a trend of launching unconventional products is apparent here.
Potential Impact on Dogecoin’s Price
At the time of this report, Dogecoin’s value was trading near $0.214, indicating a lack of substantial upward momentum on the daily chart. The Relative Strength Index (RSI) appeared to be steady around 47, signifying a balanced market position.
Source: TradingView
Trading volumes have remained relatively consistent, while the On Balance Volume (OBV) has remained unchanged, suggesting that there have been limited new capital inflows. Looking ahead, Dogecoin’s value might fluctuate within a range of $0.21 to $0.22 unless the introduction of the ETF generates excitement.
If the anticipation surrounding the launch intensifies, a breakout towards $0.23 could materialize. However, consolidation may remain the most probable scenario in the absence of significant catalysts.