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The Rex-Osprey DOGE ETF (DOJE) is slated to launch this Thursday, kicking off a meme coin ETF era in the U.S., according to Bloomberg ETF analyst Eric Balchunas.
The Dogecoin ETF will launch under the Investment Company Act of 1940 — a different framework from the Securities Act of 1933, which typically governs grantor trusts that hold physical commodities or derivatives and marks the first Dogecoin exchange-traded fund (ETF) in the U.S.
Dogecoin rallied following the news and is currently up 11% in the last seven days, according to CoinMarketCap data. Dogecoin saw a sharp surge at the very start of the week start, reaching $0.249 on Tuesday following two straight days of gains before retreating.
According to recent analysis by Santiment, Dogecoin large wallets holding 1 million to 10 million DOGE have continued to accumulate since Aug. 25 and intensified this trend just as the likelihood of a Dogecoin ETF began to be probable. This category of addresses now holds 10.91 billion and 7.23% of the Dogecoin supply, nearly at a four-year high.
Dogecoin warning issued
The upcoming Dogecoin ETF launch is no doubt generating excitement from the crypto community and traditional investors. This might spark strong demand from retail and institutional traders as well as increased speculation in the days following the launch, influencing price action.
In this light, Mishaboar, a vocal Dogecoin community member, issued a warning along these lines. Not only the Dogecoin ETF launch but the Fed's interest rate decision at the upcoming September meeting scheduled for 16th and 17th of this month might shape investor sentiment in the days and weeks ahead.
Mishaboar cautions along these lines, predicting periods of extreme volatility in the next weeks and months ahead. He issued a recommendation to traders and investors on trading alone with money they can afford to lose, and also to take profits along the way. Likewise, they should stay away from leverage and derivatives at all costs, so as not to lose everything.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team