A new era dawns for cryptocurrency investment as the first U.S. Dogecoin ETF, a “Memecoin Milestone”, is poised to debut. REX Shares and Osprey Funds are set to launch their Dogecoin exchange-traded fund (ETF) under the ticker DOJE on Thursday, September 18, 2025. This groundbreaking event occurs amidst the U.S. Securities and Exchange Commission’s (SEC) continued deliberation over a competing Dogecoin ETF proposal from Bitwise, now delayed until November 12, 2025. This move marks a significant step in the evolution of cryptocurrency investment vehicles within the U.S. market.
Key Players and Their Roles
Several key players are instrumental in this development. REX Shares and Osprey Funds are the issuers of the DOJE ETF, aiming to provide investors with regulated access to Dogecoin. Bitwise, an asset management firm, awaits the SEC’s decision on its Dogecoin ETF proposal. The SEC, as the primary regulatory body, oversees these financial products, ensuring compliance and investor protection. According to Bloomberg Intelligence Analyst Eric Balchunas, this launch signifies a pivotal moment for cryptocurrency ETFs. Ultimately, these ETFs are targeted at both retail and institutional investors seeking exposure to the Dogecoin cryptocurrency.
The Unfolding Events
REX Shares and Osprey Funds’ Approach
REX Shares and Osprey Funds have successfully navigated the regulatory landscape to introduce the first Dogecoin ETF to the U.S. market. The DOJE ETF will provide exposure to Dogecoin through a subsidiary organized in the Cayman Islands, operating under the Investment Company Act of 1940. This strategic move allowed them to bypass some of the hurdles faced by other crypto ETF applications. The Investment Company Act of 1940 is designed to protect investors by addressing potential conflicts of interest and fraudulent activities.
SEC’s Delay of Bitwise’s Proposal
In contrast to the successful launch of DOJE, the SEC has postponed its decision on Bitwise’s proposed spot Dogecoin ETF, pushing the new deadline to November 12, 2025. This marks the second delay for Bitwise’s application, with the initial postponement occurring in June, as reported by Cointelegraph. The SEC also delayed action on Grayscale’s spot Hedera ETF. Bitwise sought approval under commodity trust rules, a process that has proven challenging given the SEC’s cautious stance on cryptocurrency assets.
Timeline of Key Dates
While initial reports indicated a “Thursday debut” for DOJE earlier in the week, the launch is now expected to begin trading on Thursday, September 18, 2025. The SEC’s delay for Bitwise’s Dogecoin ETF was announced on Tuesday, September 9, 2025. These dates highlight the dynamic nature of the regulatory approval process and the anticipation surrounding the launch of the first Dogecoin ETF.
Geographical Context
The launch and regulatory decisions are centered in the United States, targeting the U.S. investment market. The REX Shares and Osprey Funds ETF, DOJE, will gain its Dogecoin exposure through a subsidiary located in the Cayman Islands. This geographical diversification reflects the complex structure of international financial products.
Reasons Behind the Developments
REX Shares and Osprey Funds secured approval for their Dogecoin ETF by leveraging the Investment Company Act of 1940, a regulatory framework typically used for mutual funds and diversified ETFs. This allowed them to bypass the more stringent approval process that has stalled other crypto ETF applications. The SEC’s delay on Bitwise’s proposal stems from its need for a “longer period” to thoroughly review the proposed rule change, analyze the application, and consider public feedback, according to official statements. The regulatory body has expressed ongoing concerns regarding Dogecoin’s volatility, liquidity, and potential vulnerability to price manipulation, reflecting its cautious approach to cryptocurrency ETFs to ensure market stability and investor protection. Despite new SEC Chairman Paul Atkins promising a friendlier stance on digital assets, a backlog of nearly 100 spot crypto ETF filings continues to contribute to these delays.
Impact on the Cryptocurrency Market
A Memecoin Milestone
The debut of DOJE is considered a significant milestone, marking the first U.S. ETF to hold a “memecoin” and potentially ushering in a new era for regulated crypto products. This event has sparked a debate within the industry, with some viewing it as a breakthrough for crypto’s legitimacy and others as merely the institutionalization of speculation. The successful launch of DOJE highlights the existence of alternative regulatory pathways for bringing crypto-related investment products to market, distinct from the traditional Securities Exchange Act of 1934 route.
Investor Access and Market Volatility
It provides investors with a regulated and accessible means to gain exposure to Dogecoin through conventional brokerage accounts, potentially attracting mainstream investors. In anticipation of the launch, Dogecoin’s price saw a surge. Conversely, the continued delays for Bitwise and other applicants create uncertainty for fund managers and investors, underscoring the SEC’s persistent cautious approach to the broader altcoin ETF market. The entry of institutional capital into the memecoin space through regulated channels is also expected to increase market volatility, according to analysts at CoinDesk.
Conclusion
The launch of the first U.S. Dogecoin ETF by REX Shares and Osprey Funds marks a pivotal moment in the cryptocurrency market. While the SEC’s cautious approach continues to delay other applications, this successful debut demonstrates alternative regulatory pathways and provides investors with a new avenue for accessing Dogecoin. The long-term impact on market stability and investor behavior remains to be seen, but this “Memecoin Milestone” undeniably signifies a step towards the mainstream integration of cryptocurrency into traditional financial systems.
