DOGE trades despite reports of a US ETF launch delay today
According to a Bloomberg analyst, the price of dogecoin rose on Friday after the launch of a US exchange-traded fund (ETF) linked to Memcoin has been delayed again.
According to CoinMarketCap data, Dogecoin (DOGE) has increased by about 4% in the last 24 hours – reaching $0.2603 at the time of writing. The increase comes despite Bloomberg senior ETF analyst Eric Balchunas saying Thursday that the launch of the U.S. Doge ETF has been delayed again.
According to a September 8 filing with the US Securities and Exchange Commission (SEC), the Rex-Osprey DOGE ETF (DOJE) with BONK (BONK), XRP (XRP), Bitcoin (BTC) and Trump Official (TRUMP) ETF is expected to list on Friday, September 12.
Earlier this month, DOJE ETF Adopted under the Investment Company Act of 1940, this framework is commonly used for mutual funds and various ETFs. This differs from Bitcoin ETFs, which were authorized by the Securities Act of 1933, which regulate commodities and asset-backed products rather than fund-type vehicles.
Balchunas told Cointelegraph that he learned about the delay directly from the company behind the ETF. The company said it would not share the reason for the delay.
The analyst added that he expects this ETF to have a “minor” impact on Dogecoin's price. He explained that there were investors interested in Bitcoin who could not directly interact with crypto. Those interested in DOGE expect to already have crypto exchange accounts.
“The further away you are from BTC, the less valuable it will be.”
Still, Balchunas expects four to five Dogecoin ETFs in October or November. He said, “More [DOGE ETFs] Starting, it moves the needle further.
Balchunas added that this ETF is different from most crypto ETFs that have been launched. He explained that it is “not really a place” because it does not directly hold DOGE, relying on a Cayman Islands-based subsidiary and derivatives – which is important because the 1940 Act requires diversification and limits the concentration of one asset.
Related: How High Can DOGE Price Go When Dogecoin ETF Is Approved?
Dogecoin ETF raises speculation.
This approval appears to be unconditional. “This is the first U.S. ETF that has no utility or purpose,” Balchunas said on X.
While the industry usually reacts positively to the approval of new crypto ETFs, this case was somewhat different. Recent reports argue that critics of the memecoin fund institutionalize speculation, as well as charge investors fees they could avoid by buying Dogecoin directly.
Related: KuCoin Targets 10% of Dogecoin Mining Capacity Through New Mining Platform
Doge attracts institutional attention
Dogecoin, the world's first memecoin, is increasingly attracting more institutional attention. According to Friday's reports, CleanCore Solutions, which makes water ozone purification systems, has reached half of the 1 billion Dogecoin treasury after buying $130 million in DOGE this week.
The announcement follows CleanCore Solutions' announcement that it will raise $175 million through a private placement and use the proceeds to acquire additional DOGE. This offering was successfully closed two days after it was announced on September 5th.
Also this month, Trump family-linked media corporation Tumzup announced plans to acquire 3,500 Dogecoin miners. The announcement described memecoin as “one of the most widely held cryptocurrencies.”
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