What happened?
The first meme coin exchange-traded fund (ETF) has officially began trading, following multiple delays. The REX-Osprey DOGE ETF (DOJE) now provides direct exposure to the popular meme coin, Dogecoin, via the U.S. regulated markets. Prior to the launch, the price of Dogecoin increased by 5.4% within 24 hours, and 27% over the last 30 days.
Who does this affect?
This impacts both retail and institutional investors who now have a regulated channel to gain exposure to Dogecoin. The launch of this ETF could possibly influence the current sentiment towards meme coins in the market, as it allows for more accessible and regulated trading options. Additionally, upcoming meme coins like Maxi Doge ($MAXI) may also capture investor attention due to such developments in the market.
Why does this matter?
The introduction of this meme coin ETF is significant as it suggests an increasing legitimization and acceptance of meme coins within regulated financial markets. The growing interest in such cryptocurrencies can lead to greater demand and potentially, higher prices. Moreover, if Dogecoin’s price continues its upward trajectory, it’s predicted to reach $2, placing its market cap close to $300 billion – behind only Bitcoin and Ethereum.