First U.S. Meme Coin ETF Poised to Launch, Signaling a New Phase for Crypto and TradFi

The first U.S. exchange-traded fund (ETF) focused on a meme coin could hit the market this week, marking a milestone in the ongoing integration of cryptocurrency with traditional finance — even if “utility” is not part of the equation.

The Rex Shares-Osprey Dogecoin ETF (DOJE), originally scheduled to debut last week alongside other crypto and politically themed ETFs, was delayed, leaving investors and analysts speculating about its launch. Bloomberg ETF analysts Eric Balchunas and James Seyffart now suggest Thursday is the most likely debut, though they caution that nothing is certain.

“It’s more likely than not,” Seyffart said, describing Thursday as the base case.

DOGE has been among the top performers in the past month, rising roughly 15% despite a 3.5% drop over the past 24 hours ahead of the ETF’s potential launch.

If introduced, DOJE would be the first U.S. ETF to focus on a meme coin — cryptocurrencies often criticized for lacking utility or a clear economic purpose. Meme coins such as Dogecoin, Shiba Inu (SHIB), and Bonk frequently gain traction through internet culture, celebrity endorsements, and speculative trading rather than fundamental value.

Balchunas highlighted the fund’s uniqueness on X: “First-ever US ETF to hold something that has no utility on purpose.”

DOJE is structured as a derivatives-based fund rather than a spot ETF, meaning it will gain exposure to DOGE via futures and other instruments through a Cayman Islands subsidiary rather than holding the token directly. This approach allows investors to participate through traditional brokerage accounts without physical custody of the coin.

Approved under the Investment Company Act of 1940 — a framework typically used for mutual funds and diversified ETFs — DOJE differs from most crypto ETFs, including bitcoin funds that are approved under the Securities Act of 1933 for commodity-based or asset-backed products. Essentially, DOJE resembles a mutual fund more than a commodity trust.

Several firms have also filed applications for spot DOGE ETFs, which would hold the meme coin directly. These applications remain under review by the U.S. Securities and Exchange Commission (SEC), which has gradually become more receptive to crypto ETFs since approving multiple bitcoin products in early 2024.

Despite longstanding skepticism about meme coins’ lack of fundamental value, the market has shown that investor demand often outweighs criticism. Seyffart expects the ETF landscape to follow a similar path.

“There’s going to be a bunch of products like this, whether you love it or need it — they’re going to be coming to market,” he said. “Many financial products exist solely as vehicles for short-term trading. If there’s an audience for this in crypto, I wouldn’t be surprised if it finds one in ETFs and TradFi as well.”

The success of DOJE could determine whether additional meme coin funds enter the market or simply prove the concept is viable. Either way, the ETF signals a new phase in the convergence of internet culture and traditional finance.