Cryptocurrency ETF reaches a turning point: The first Dogecoin ETF in the United States has been approved for listing

This week, U.S. regulators approved the first meme coin-based exchange-traded fund, the Rex-Osprey Dogecoin ETF, which will begin trading on Thursday. This marks a significant shift in cryptocurrency regulatory policy under the leadership of Paul Atkins, the new chairman nominated by Trump, at the U.S. Securities and Exchange Commission (SEC).

In the new regulatory environment, the SEC did not raise objections to the fund, allowing it to officially list after a 75-day regulatory review period. This contrasts sharply with the tenure of former chairman Gary Gensler, who took a hardline stance against cryptocurrencies and only approved the first spot Bitcoin ETFs in January 2024 after losing a lawsuit.

In addition to the Dogecoin ETF, Rex Financial and Osprey Funds will also launch the first XRP ETF in the U.S. and have applied to issue the $TRUMP ETF, which invests in Trump's personal meme coin. The management fee for the Dogecoin ETF is 1.5%, while the XRP fund is 0.75%, and both funds will be listed on the Cboe exchange. Currently, there are 90 to 100 cryptocurrency ETF applications awaiting approval, and analysts expect these products to be approved.

In response, some analysts have warned that this move could confuse investors, leading them to mistakenly believe that digital assets like Dogecoin, which lack fundamental value and use cases, have economic value. However, supporters point out that Dogecoin is currently the sixth-largest non-stablecoin cryptocurrency by market capitalization, and market demand cannot be ignored.

SEC Policy Shift Drives Cryptocurrency ETF Boom

Under Paul Atkins' leadership, the SEC has fundamentally changed its stance on cryptocurrencies. On Wednesday, the SEC approved new simplified listing standards for cryptocurrency ETFs, which are expected to release a wave of new products tracking digital currencies next month.

Currently, Bitcoin and Ethereum ETFs have attracted over $175 billion in funds, with mainstream asset management companies like BlackRock and Fidelity dominating the field. Todd Rosenbluth, head of research at consulting firm TMX VettaFi, stated:

This is a watershed moment for the SEC's shift towards supporting cryptocurrencies.

Bryan Armour, director of North American passive strategies research at Morningstar, warned:

I think this is dangerous; it normalizes collectibles. Dogecoin looks like a fad, similar to Beanie Babies or baseball cards.

Unlike cryptocurrencies like Bitcoin and Ethereum, which have decentralized finance or value storage use cases, meme coins lack such fundamental support. They are often created as jokes and reflect a form of online community engagement.

Greg King, CEO of Rex Financial, defended this by stating:

The digital asset revolution has begun. Being able to provide exposure to some of the most popular digital assets under the protection of the U.S. Investment Company Act of 1940 ETF framework is an achievement that Rex-Osprey is proud of.

Trump Family Advocates for Cryptocurrency to "Save the Dollar"

Eric Trump, Trump's second son, stated that the growing demand for cryptocurrencies could "save the dollar" by attracting global investment flows into the U.S., with the digital asset boom directing trillions of dollars from unstable currencies around the world into the U.S. **

This year, the United States has seen a significant decline, with Trump initiating a trade war and repeatedly attacking the Federal Reserve, shaking investors' confidence in the dollar as the global reserve currency. At the same time, the dollar has also been hit by concerns over the U.S. debt burden, which is expected to increase further due to Trump's tax legislation.

Eric Trump made the above remarks after ringing the Nasdaq opening bell for the market debut of the cryptocurrency company American Bitcoin, in which he holds shares worth over $500 million.

It is worth mentioning that the Trump family's cryptocurrency investments involve the Truth Social Bitcoin ETF, two meme coins, and a Bitcoin inventory business affiliated with the Trump Media & Technology Group.

Eric Trump defended the MELANIA and TRUMP meme coins launched earlier this year, stating that it is merely "entertainment." He said, "People want to bet on a certain coin or a player. They want to bet on celebrities or well-known brands, or buy a small piece of someone through digital currency."