Dogecoin ETF Surpasses Expectations in Debut on Wall Street
By: Eva Baxter
In a significant milestone for cryptocurrency investments, the first U.S. exchange-traded fund (ETF) linked to Dogecoin has made a remarkable debut in the financial markets. The REX-Osprey Doge ETF, trading under the ticker DOJE, recorded an impressive trading volume of nearly $6 million during its first hour on the market on September 18. This performance significantly exceeded initial predictions, demonstrating a robust investor demand for crypto assets presented in regulated investment vehicles.
Traditionally, most ETFs see considerably lower trading volumes on their launch days, often less than $1 million. Bloomberg analyst Eric Balchunas underscored this achievement by comparing it with his forecast, which set the over-under at $2.5 million. The robust early trading suggests that there is a strong appetite among retail investors for exposure to Dogecoin through regulated channels.
As Dogecoin traded at $0.281, reflecting a 4.45% increase for the day, the popularity of the ETF reflects broader trends in the market where a growing number of cryptocurrency-linked ETFs are being introduced amidst investor interest. The DOJE ETF's launch aligns with a range of new filings and offerings from REX Shares and other financial institutions, including leveraged crypto index ETFs, illustrating a growing acceptance of cryptocurrencies in traditional financial markets.
While the ETF’s registration under the Investment Company Act of 1940 initially raised concerns about potentially dampened enthusiasm compared to Bitcoin ETFs registered under the 1933 Securities Act, the actual market response painted a different picture. It pointed to continued investor interest, particularly during periods when smaller tokens such as Dogecoin outperform more established counterparts like Bitcoin and Ethereum. The sustained interest in this sector is a testament to Wall Street's deepening engagement with digital assets, even in a market characterized by significant volatility.
