First US Dogecoin ETF $DOJE to launch next week after 'rain delay'

Source Cryptopolitan

The first U.S. exchange-traded fund tied to Dogecoin (DOJE) is facing delays, with Senior ETF Analyst Eric Balchunas predicting the launch will occur mid-next week. $DOJE is designed to give investors exposure to the popular meme-inspired crypto through the regulated investment vehicle.

In several updates on X, Balchunas confirmed that the launch originally slated for Thursday had been postponed to September 12, calling it a “rain delay.” On Friday, he updated followers with further news, saying: “Another delay. Launching next week. Mid week. Prob Thur.”

As reported by Cryptopolitan, the fund’s issuer, Rex Shares is partnering with retirement products provider Osprey Funds to launch the first memecoin ETF. The two firms filed a Form N-1A registration statement with US regulators on September 5, formally seeking approval for the product alongside other token funds like Trump.

DOJE filed under the 1940 Act to expedite approval

Unlike most pending crypto ETF proposals, the Dogecoin fund was filed under the Investment Company Act of 1940, known as the “’40 Act.” Most spot crypto ETFs are submitted under the Securities Act of 1933, which requires a more conscientious review and the exchange rule-change process called a 19b-4 filing.

The ’40 Act imposes stricter obligations on funds where ETFs registered under the statute must adhere to rules around diversification, governance, and custody of assets. In practice, this means the Dogecoin ETF cannot hold all its assets exclusively in Dogecoin but must maintain a portion of holdings in other regulated securities, such as traditional ETFs, to reduce exposure to the single crypto.

Other firms attempting to list Dogecoin ETFs through the “normalized process” have faced roadblocks under the traditional filing process. On April 10, 21Shares submitted an application for a Dogecoin fund, against the backdrop of earlier attempts by Bitwise and Grayscale. None of those filings has yet received clearance from the US SEC.

Through the 1940 Act pathway, Rex and Osprey could have a “first-mover advantage,” where they would not have to wait for a rule-change approval from the SEC. Industry observers noted that this has given the firms a leg up over competitors stuck in the formal review queue.

ETF Store president Nate Geraci described the strategy as “a regulatory end-around” that lets issuers reach the market faster than traditional applicants. 

Dogecoin is consolidating around the $2.590 – $2.610 price range in the last 24 hours and is up 4.8% from its lows during the time period. The token has tested its support area multiple times but has consistently rebounded, recording a 19% uptick in just a week, but a meager 5% in 30 days.

Analysts previously recommended long positions at support levels as technical charts indicate the break of a triangle pattern, with resistance now in the $0.295 to $0.305 range.

SEC delays on other crypto ETF products

On other crypto fund products, the SEC issued a public notice on Wednesday saying it needed more time to review a group of filings related to Ethereum ETFs that would allow staking. Applications from BlackRock, Fidelity, and Franklin Templeton were among those affected. 

The agency also delayed decisions on proposals from Franklin Templeton to launch ETFs tracking the performance of altcoins such as XRP and Solana.

Bloomberg Intelligence analyst James Seyffart has compiled data showing more than 90 crypto ETF applications are awaiting approval at the SEC. According to James McKay, founder of McKayResearch, the current pace suggests “one for every top 30-40 cryptocurrency inside 12 months, even with delays.”

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