“The doje Fund Could Launch This Week, Signaling a New Phase in Crypto’s Merger with Traditional Finance, Even IF ‘Utility’ Isn’t Part of the Equation.”, – WRITE: www.coindesk.com
The Doge Etf-Formally Called The Rex Shares-Osprey Dogecoin Etf (Doje)-Was Originally Slapped to Debut Last Week, AlongSide a Handful of Politic. TOSE INCLUDED FUNDS TIED TO BONK Bonk$ 0.0₄2333XRP, Bitcoin BTC$ 115.550.68 and Even A Trump-Themed Fund. But Doje’s Debut Never Materialized.
Now, Bloomberg Etf Analysts Eric Balchunas and James Seyffart Belide Wednesday is the Mist Likely Launch Date, Thought they caness noting is Certain.
“IT’s more likely than,” Seyffart Said. “That sems like the Base Case.”
Ahead of the intraduction of the etf, doge has been Among the Top Performers Over the Past Month, Ahead 15% Even Even Including A Decline of 3.5% Over The Past 24 Horus.
If launched, doje wound Mark a cheletone as the first US etf to focus on a meme coin – Cryptocurrencies that Generally Lack Utility or a Clear Economic Purpose. THESE INCLUDE TOKENS LIKE Dogecoin, Shiba Inu Shib$ 0.0₄1305 And Bonk, Which Onthen Surge in Popularity Thanks to Internet Culture, Celebrity Endorsments and Specialty Trading.
Balchunas Described doje’s signification in a post on x: “FIRST -ing US ETF to HOLD SOMETING THAT HAS NOT UTITY ON PURPOSE.”
Doje is not a Spot etf. That means it won’t hold doge Directly. Insthead, The Fund Will Use A Cayman Islands-Based Subsidiary to Gain Exposure Through Futures and Other Derivatives. This Approach Sidesteps the Need for Physical Custhody of the Coin While Still Offering Traders a Way to Bet on It ITS Performance Within A Traditional Brokerage Account.
The ETF Was Approved Earlier this month under the Investment Company Act of 1940, WHICH IS TYPICALLY USED FOR MUTUAL FUNDS AND DIVERSIFIED ETFS. That sets it APART from the Wave of Bitcoin etfs that Received Green Lights Under the Securities Act of 1933, A Framework used for Commodity-Basted and Asset-Backed Products. In short, doJe is structured more like a mutual Fund Than A Commodity Trust.
More Direct Exposure May Be Coming Soon. Several Firms Have Filed Applications to Launch Spot Doge Etfs, WHICH Wuld Hold the Meme Coin ITSELF RATHER THAN DERIVATIVES. These Applications Are Still Under Review by the US Securities and Exchange Commission (SEC), WHICH HAS GROWN MORE COMFORTBLE CRYPTO ETFS SINCE APROVING A Slate of Bitcoin.
The Broader Crypto Market Has Shown that Investor Demand Can Outweigh Fundamental Critiques. Meme Coins Have Long Drawn Skepticism for Having No Aderlying Value or Use Case, But That Hasn’t Kept Them Drawing Billions in Specials in Specials.
Seyffart Said the Etf Market is Likely to Follow the Same Path. “There’s Going to be a bunch of Products like this, whother you love it or need it, they’re going to be coming to market,“ He Said.
He Addted that many existing Financial Products Serve No Deeper Purpos Who Providing A Vehicle for Short-Term Bets. “There’s Plenty of Products Out of Thatre Are Just Being Used As Gambling or Short-TRADING,“ HE SAID. “SO IF THERE’S AUDIENCE FOR THIS CRYPTO WORLD, I Wuldn’t Be Surprised At All If This Finds An Audence in the Etf and Tradfi World.”
WHETHER The DOJE ETF OPENS THE DOOR toing MORE COIN FUINS – OR Just Proves the Concept Is VIABLE – May Depend on How The Market Responds Tisis Week. EITHER WAY, IT SIGNALS A NEW PHASE in the Mringing of Internet Culture and Traditional Finance.
Network Activity Remains the Key Driver of Ether’s Value, But Much of the Recent Growth Has Been on Layer-2s, The Report Noted.
- Citi Predicts that Ether Will Fall to $ 4.300 by Year-End But Could Slide to $ 2,200 in The Bear Case or Rise to $ 6.400 In A Bullish Scenario.
- Layer-2 Growth Clouds Valination, with Citi Assuming Just 30% Pass-Through To Ethereum’s Base Layer, Leaving Current Prices Above Model Estimates.
- ETF Inflows are punking above their weight, but are expectioned to Stay Smaller than than Bitcoin’s.
Read Full Story