Regulators Create Pathway for Memecoins to Enter Mainstream Investment Portfolios

The U.S. cryptocurrency sector has reached a major milestone as

and spot ETFs started trading on as well as other leading exchanges. This progress reflects a shift in regulatory policies that may help integrate memecoins and additional digital assets into mainstream investment strategies.

The REX-Osprey DOGE ETF (ticker: DOJE) launched as the inaugural U.S.-listed ETF centered on Dogecoin—a digital currency that originated as a parody in 2013 but has since become a prominent force in the crypto world. This fund is designed to mirror Dogecoin’s price movements by allocating at least 80% of its portfolio to the Reference Asset. Structured under the 1940 Act, the ETF was able to avoid the more lengthy approval processes that usually apply to spot crypto ETFs.

With the SEC’s newly adopted standardized framework for listing crypto ETFs, the process for new products to enter the market has been streamlined. Previously, each crypto ETF required a 19b-4 application, often taking up to 240 days to approve. Now, the maximum waiting period has dropped to 75 days. SEC Chair Paul Atkins commented that this change is expected to encourage innovation and lower regulatory hurdles for

offerings.

The DOJE ETF gives both retail and institutional investors a regulated and well-known way to invest in Dogecoin, without the need to handle private keys or use crypto exchanges directly. The assets are kept in cold storage, and any staking rewards from the underlying Dogecoin are passed on to shareholders. However, these payouts are

assured and can change greatly from month to month.

Although DOJE is a groundbreaking investment product, it carries certain risks. Dogecoin, as a meme-inspired digital currency, lacks inherent utility and is mostly influenced by community enthusiasm and investor sentiment, making it prone to significant price fluctuations. Furthermore, the ETF’s structure, which involves a U.S.-based parent company and a Cayman Islands subsidiary, can lead to tax complexities and tracking discrepancies due to U.S. regulatory compliance.

The landscape for crypto ETFs has been changing quickly, particularly under the current U.S. administration. The SEC’s recent permission for in-kind redemptions with spot

and ETFs illustrates the growing alignment of digital assets with conventional financial instruments. Broader support has come from the White House, which released a 168-page blueprint to connect digital assets with traditional finance.

Allowing DOJE and other similar ETFs to move forward could open doors for more

ETFs down the line. The early momentum of DOJE could prompt more asset managers to apply for funds that track various community-driven tokens. This is already happening, with firms like Bitwise and 21Shares submitting proposals for Dogecoin ETFs, and possible plans for ETFs that follow tokens such as (SHIB) and others.

From a market standpoint, DOJE’s introduction is a landmark event for both the cryptocurrency industry and the established financial world. It provides institutional investors with a safer and more convenient way to access Dogecoin, while also demonstrating the increasing recognition of digital assets within diversified investment portfolios. As approval for more crypto ETFs continues, it is anticipated that both liquidity and price discovery will benefit, possibly leading to more stable pricing for these otherwise highly volatile assets.

Looking ahead, similar ETFs for other digital currencies—like XRP and

—are expected to be considered next. The SEC’s regulatory framework and the momentum from DOJE’s launch should help accelerate the introduction of these products. Nonetheless, investors should remain vigilant, as digital assets are still highly speculative and can experience dramatic price swings.