Excitement is brewing in the investment community as REX Shares gears up to introduce what they claim will be the first-ever Dogecoin ETF in the United States. This announcement was made via a post on X, where REX Shares emphasized that the REX-Osprey DOGE ETF, or DOJE, aims to offer investors a unique opportunity to tap into the trading potential of Dogecoin, a cryptocurrency that has garnered significant popularity and community support.

The journey towards launching this ETF can be traced back to a filing made with the Securities and Exchange Commission (SEC) on January 21, 2025, where REX outlined plans for a diverse range of crypto-focused funds. Among these, the DOGE ETF stands out, explicitly aiming to track the performance of Dogecoin for interested investors.

What Makes REX-Osprey’s Dogecoin ETF Unique?

Unlike typical proposals for cryptocurrency ETFs, which often encounter lengthy approval processes, REX’s strategy hinges on a distinctive fund structure. Many existing applications for Dogecoin ETFs are tied to commodity trusts which require specific regulatory changes known as a 19b-4 before they can launch. This often lengthens the timeline for approval.

For instance, Bitwise has pursued listing a Dogecoin ETF on NYSE Arca through this conventional regulatory path, while Nasdaq is processing a similar proposal from 21Shares. In contrast, REX’s DOGE ETF is designed under a 1940 Act open-end ETF trust structure, allowing it to potentially bypass the customary delays linked to the 19b-4 consensus.

This innovative approach mirrors the strategy that REX and Osprey successfully employed to release their Solana + Staking ETF earlier this year, indicating a potential shift in how cryptocurrency ETFs may be structured in the future.

The prospectus outlines that the DOGE ETF will invest a minimum of 80% of its assets in Dogecoin directly or in financial products tied to its performance. They may also utilize instruments like futures and swaps to manage exposure. To enhance efficiency, REX-Osprey will leverage a subsidiary based in the Cayman Islands. This structure is designed to maintain a controlled investment limit and comply with relevant tax regulations.

In essence, this ETF is positioned as a straightforward tool for investors looking to gain exposure to Dogecoin’s price movements, capitalizing on a variety of investment techniques.

As REX navigates the ETF landscape, traditional applications for Dogecoin continue to evolve. Notable filings, including those from Grayscale and others, illustrate the broader interest and competition within the space. Such commodity-based ETFs will require regulatory approval before trading can commence, further extending potential timelines.

Nevertheless, REX’s successful listing of the Solana + Staking ETF provides a solid precedent for their current endeavors. This previous release emphasized the benefits of simplifying regulatory paths while providing unique investment opportunities to shareholders—a model REX aims to replicate with the Dogecoin ETF.

Although speculation continues surrounding the timing of REX’s launch, it is essential to recognize that this announcement merely serves as an introduction to the prospectus. The SEC’s approval is a critical factor, alongside the choice of a suitable exchange for listing.

The SEC is also deliberating over broader listing standards that could pave the way for smoother approvals of commodities and crypto ETPs across the board. If implemented, these standards could significantly enhance the environment for crypto investments, while REX’s unique structure affords it a potential head start, provided they secure approvals in due course.

As of the latest market data, Dogecoin is trading at approximately $0.2165, reflecting ongoing interest and investment in this dynamic digital asset. The potential launch of the REX-Osprey ETF could further stimulate this interest, attracting both seasoned investors and newcomers alike.