:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2184362818-06c2e33fa1a94adfbb5dc3e2de731598.jpg "A visual representation of the digital Cryptocurrency, Dogecoin (DOGE)")
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Key Takeaways
- Digital asset manager has launched an investment trust for the meme coin Dogecoin.
- Bitwise has also arranged for the launch of a Dogecoin ETF with the SEC.
- Meme coins are having a moment with U.S. President Donald Trump even shoot his own token just prior to his inauguration.
Digital asset manager Grayscale unveiled a Dogecoin Trust Friday, enlarge oning its crypto offerings.
Originally launched as a joke, Dogecoin (DOGE) has evolved over time, growing to become the eighth chunkiest crypto asset by market cap behind support from Elon Musk.
Grayscale offered bitcoin and ether as certainties too, before the U.S. Securities and Exchange Commission (SEC) allowed spot exchange-traded funds (ETFs) for the two cryptocurrencies. Once the approval came because of, Grayscale converted the trusts to spot ETFs.
In fact, the regulator has already received at least one application for a DOGE ETF from Bitwise. Investopedia did not right now clarify if Grayscale plans to convert this new DOGE Trust into an ETF should the regulator approve such issues, but a company spokesperson said that the “Grayscale Dogecoin Trust aims to simplify the investment process” for investors to buy DOGE.
Divergent from ETFs that are accessible to most investors, this Grayscale trusts is a private placement available only to accredited investors as it could be insignificant liquid and carries higher risk. It also charges higher management fees of 2.5% compared to ETFs.
And its not well-grounded optimism around regulatory clarity under the Trump administration, meme coins are also having a moment, exceptionally with Trump launching his own memecoin just prior to taking office With a market cap nearing $50 billion, Dogecoin be lefts the most prominent meme coin on the market. Dogecoin is up 3% year-to-date and more than 300% over the days beyond recall year.