The SEC is playing its usual game of “wait and see” with crypto, once again putting a Dogecoin ETF from Bitwise on hold. But don’t count out the Doge believers yet. Another firm, Rex Shares, along with Osprey Funds, found a clever workaround. They’re about to launch their own Dogecoin fund, and it’s built on completely different rules.
The U.S. financial watchdog, the SEC, keeps hitting the brakes on Bitwise’s plan for a Dogecoin exchange-traded fund. They stated in a document filed today that they need “a longer period” to make a decision. This isn’t new. It’s the same line they’ve given for other Dogecoin and altcoin ETF requests, as reported by various media.
Bitwise saw a similar delay back in June. This shows the SEC is extra careful with digital assets that aren’t traditional. It’s not just Bitwise, either. The regulatory uncertainty isn’t limited to a single project. Many other crypto funds are stuck in the same waiting game.
New SEC Chairman Paul Atkins talked about being more open to digital assets. But actions speak louder than words. Almost 100 spot cryptocurrency ETFs are still waiting for a ‘yes’ or ‘no.’ This means a lot of companies and investors are stuck in limbo, facing continued regulatory pressure.
Rex and Osprey Push Ahead with DOJE
Here’s where the story gets interesting. Rex Shares and Osprey Funds found a different route for their own Dogecoin ETF. This fund, which will trade under the ticker DOJE, is set to hit the market this week. Instead of waiting on the SEC’s slow pace, they used an old rulebook: the Investment Company Act of 1940. This law helps keep collective investment funds honest and protects people from potential conflicts of interest and fraud.
DOJE’s plan is pretty smart. Investors won’t directly hold Dogecoin. Instead, they’ll get exposure through a subsidiary company set up in the Cayman Islands. It’s called REX-Osprey DOGE (Cayman) Portfolio S.P. This lets them tap into Dogecoin under rules already in place, sidestepping the current gridlock.
Bloomberg analyst Eric Balchunas weighed in on X. He said DOJE launching “under the ’40 Act” might kick off the ‘memecoin ETF era.’ He added that it’s probably the first U.S. ETF to hold an asset that “has no utility on purpose.”
Market Context
DOJE hitting the market is a big deal for memecoins. These digital tokens started from online communities. People often criticize them for not having a real practical use, but they’ve become super popular for speculative interest. Rex and Osprey’s clever move could show other companies a new way forward. It offers alternative legal paths to market while traditional spot applications hit roadblock after roadblock.
For Bitwise, the wait continues. Not getting the SEC’s stamp of approval limits its ability to bring in big institutional investors. These players want regulated products on regular stock exchanges. But DOJE’s launch changes the game. It creates a new standard and could alter the competitive dynamic.
This whole situation – the SEC holding back Bitwise while DOJE launches – asks big questions. How will cryptocurrency rules really take shape in the United States? The SEC has shown resistance, but DOJE proves that financial innovation keeps finding ways around obstacles.