Cryptocurrency ETFs usher in watershed: The first Dogecoin ETF in the United States is approved for listing

# Approval of Rex-Osprey Dogecoin ETF Marks Watershed Moment for SEC's Shift to Crypto Support  

Source: Wall Street Insights  

The approval of the Rex-Osprey Dogecoin ETF represents a watershed moment in the U.S. Securities and Exchange Commission (SEC)’s shift toward supporting cryptocurrencies. On Wednesday this week, the SEC approved a new simplified listing standard for cryptocurrency ETFs. This major policy shift by the SEC has triggered an explosion in cryptocurrency ETF activity—currently, 90 to 100 cryptocurrency ETF applications are pending review, and analysts expect all these products to be approved.  

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

Under the new regulatory framework, the SEC raised no objections to the fund, allowing it to list officially after a 75-day regulatory review period. This stands in stark contrast to the tenure of former SEC Chairman Gary Gensler, who took a hardline stance against cryptocurrencies and only approved the first batch of spot Bitcoin ETFs in January 2024 after losing a legal battle.  

In addition to the Dogecoin ETF, Rex Financial and Osprey Funds will also launch the first U.S.-based XRP ETF simultaneously, and have applied to issue the $TRUMP ETF—an ETF investing in Trump’s personal meme coin. The management fee for the Dogecoin ETF is 1.5%, while that for the XRP fund is 0.75%. Both funds will be listed on the Cboe Exchange. Currently, 90 to 100 cryptocurrency ETF applications are pending review, and analysts anticipate all of them will be approved.  

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

## SEC’s Major Policy Shift Drives Explosion in Crypto ETFs  

Under Paul Atkins’ leadership, the SEC has undergone a fundamental shift in its attitude toward cryptocurrencies. On Wednesday this week, the SEC approved a new simplified listing standard for cryptocurrency ETFs, and a wave of new digital currency-tracking products is expected to be released next month.  

To date, Bitcoin and Ethereum ETFs have attracted over $175 billion in capital, with mainstream asset managers such as BlackRock and Fidelity dominating this space. Todd Rosenbluth, Director of Research at TMX VettaFi (a consulting firm), stated:  

“This is a watershed moment for the SEC’s shift to supporting cryptocurrencies.”  

Bryan Armour, Director of North American Passive Strategy Research at Morningstar, warned, “I think this is dangerous—it normalizes collectibles. Dogecoin seems like a fad, similar to Beanie Babies or baseball cards.”  

Unlike cryptocurrencies such as Bitcoin and Ethereum, which have use cases in decentralized finance (DeFi) or as stores of value, meme coins lack such foundational support. They are typically created as jokes and serve more as a form of online community engagement.  

Greg King, CEO of Rex Financial, defended the move, saying:  

“The digital asset revolution has begun. Rex-Osprey is proud to offer exposure to some of the most popular digital assets under the protection of the U.S. Investment Company Act of 1940’s ETF framework.”  

## Trump Family Pushes Cryptocurrencies to “Save the Dollar”  

Eric Trump, the second son of Donald Trump, stated that the growing demand for cryptocurrencies could “save the dollar” by attracting global investment into the U.S. He added that the digital asset boom would channel trillions of dollars from unstable currencies around the world into the U.S.  

This year, the U.S. dollar has fallen sharply. Trump has launched trade wars and repeatedly attacked the Federal Reserve, shaking investors’ confidence in the dollar as the world’s reserve currency. Meanwhile, 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 opening bell at the Nasdaq to mark the market debut of American Bitcoin, a cryptocurrency company in which he holds shares worth over $500 million.  

Notably, the Trump family’s cryptocurrency investments include the Truth Social Bitcoin ETF, two meme coins, and a Bitcoin custody business under Trump Media & Technology Group.  

Eric Trump defended the MELANIA and TRUMP meme coins (launched earlier this year), describing them as merely “entertainment.” He said, “People want to bet on a coin, or a player. They want to bet on a celebrity or a well-known brand, or buy a small piece of someone through digital currency.”  

## Risk Warning and Disclaimer  

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