Grayscale Unveils Dogecoin Trust. Will an ETF Follow?

Digital asset management company Grayscale has launched the Grayscale Dogecoin Trust, a fund designed to track the performance of the leading memecoin, Dogecoin (DOGE). This new investment product, which signals growing institutional interest in the meme token, exposes investors to DOGE without requiring direct cryptocurrency ownership.

Why Dogecoin?

Dogecoin started as a meme coin but has evolved into one of the most popular cryptocurrencies, backed by a strong community and endorsements from figures like Elon Musk. Emphasizing the usefulness of Dogecoin, Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, said:

“Dogecoin represents a paradigm shift in global financial accessibility. Its low transaction costs and rapid transfer speeds make it an optimal vehicle for international remittances, particularly in regions with underdeveloped banking infrastructure.”

Launching the Dogecoin Trust allows Grayscale investors to gain exposure to the leading meme token in the form of security without buying the asset directly.

In the past, Grayscale amassed investors’ interest through its Bitcoin Trust and Ethereum Trust, which were later converted into exchange-traded funds (ETFs) last year. Launching as ETFs allowed the asset manager to offer the investment vehicles to a broader audience.

There are speculations that the firm might follow the same path involving the newly introduced Dogecoin Trust by applying for and debuting a Dogecoin ETF. If Grayscale follows this path shortly, it will align itself with other firms eagerly anticipating a memecoin-centric ETF. One such company is Bitwise, an investment firm that applied for a Dogecoin ETF with the United States Securities and Exchange Commission (SEC) last week. The regulatory agency has yet to approve the product.

Growing Interest in DOGE

Over the past few weeks, interest in the leading meme token has soared. Despite being created for fun and amusement, DOGE has become one of the top 10 cryptocurrencies, thanks to various factors, including Elon Musk’s endorsement.

Earlier this month, Musk featured the dog-themed project’s mascot on the website of a government agency he heads under Trump’s administration. The government office’s name is abbreviated as D.O.G.E., a nod toward the popular dog-themed meme token.