First US Dogecoin ETF Fuels Debate Over Speculation vs. Adoption

The First US Dogecoin Exchange-Traded Fund (ETF) is set to launch this Thursday, which has fueled the debate over whether it’s a significant breakthrough or the institutionalization of speculation.

The US Dogecoin ETF is quite different from the previously launched Bitcoin ETFs. The Bitcoin ETFs were approved under the Securities Act of 1933, while the Dogecoin ETF has won approval under the Investment Company Act of 1940. This type of regulatory framework is typically used for diversified ETFs and mutual funds.

Adoption or Speculation?

Critics have argued that the ETF institutionalizes speculation and warned that it will simply be a wrapper for speculation, incurring fees that investors could easily avoid by buying DOGE directly. Some critics also point out the irony that Dogecoin, which started as a joke, has quickly taken over projects with more impactful use cases in the race towards the ETF stage.

On the other hand, supporters of the Doge ETF have argued that an ETF will bolster custody, audits, and disclosure standards, thus increasing DOGE's accessibility for more mainstream investors.

Why Dogecoin ETF?

Experts are debating whether there is even a need for a Dogecoin ETF. Over the past few years, Dogecoin has helped some investors become millionaires; however, its price has almost always battled inflation.

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Dogecoin, which originated as a Bitcoin fork, now ranks among the top 10 cryptocurrencies. It is known for its unlimited supply, as 5 billion DOGE are minted every year. Unlike many other memecoins, DOGE has successfully survived several bear markets.

As we inch closer to the controversial launch of the Dogecoin ETF, there is also some excitement about it in the cryptocurrency sector. “Dogecoin may have started as a joke, but it’s become a serious altcoin that’s brought real investors and engineers into the space,” said Mike Maloney, CEO and founder of Incyt. “Community engagement is as real for a coin as it is for a stock.”