Grayscale Investments announced the launch of Grayscale Dogecoin Trust on Friday, offering institutional and accredited investors the opportunity to access this meme-inspired cryptocurrency. This move comes as Dogecoin's market cap reaches $50 billion, with prices tripling over the past year, according to CoinGecko data.
The token's price surge aligns with pro-crypto policies under the Trump administration, including the establishment of the Department of Government Efficiency (DOGE), signaling a shift towards regulatory openness.
The new trust charges an annual management fee of 2.5% and reflects Grayscale's strategy with the XRP Trust, launched in September 2024. This comes after the company filed for a spot XRP ETF with the New York Stock Exchange on January 30, although plans for a Dogecoin ETF remain unconfirmed.
Trump's Policies Boosting Memecoin Momentum
Dogecoin's price has increased over 328% in the past 12 months, with a notable surge following the U.S. elections in November 2024.
President Trump's pro-crypto stance, including the iconic DOGE department, has spurred institutional interest. Since January, several asset managers have filed for meme coin ETFs—a stark contrast to the cautious approach of the previous administration under former SEC Chair Gary Gensler.
Grayscale's Head of Product and Research, Rayhaneh Sharif-Askary, emphasized the utility of Dogecoin in the press release:
"Dogecoin has evolved into a powerful tool for enhancing financial inclusion. We believe that as a faster, cheaper, and more scalable derivative product of Bitcoin, Dogecoin is helping underserved groups access the financial system."
Inside the Dogecoin Trust
Grayscale's Dogecoin Trust operates similarly to its single-asset products, offering daily subscription packages for eligible investors.
Unlike ETFs, this trust has yet to provide public trading, limiting access to accredited participants. Grayscale's XRP Trust, launched in 2024, serves as a potential blueprint. The company filed for an XRP ETF in January but is still awaiting regulatory approval.
Originally created as a joke in 2013, Dogecoin is now ranked among the top 10 cryptocurrencies by market capitalization. Its price increase in 2024 reflects growing acceptance, bolstered by endorsements from figures like Elon Musk and policy shifts under Trump. The token's daily trading volume averages $1.5 billion, according to CoinMarketCap data.
Legal Risks and ETF DOGE Speculation
While Grayscale's XRP ETF filing shows ambition, regulatory hurdles remain. The SEC has previously rejected cryptocurrency ETFs due to concerns about market manipulation. However, the Trump administration encouraged innovation, pushing companies to test boundaries with meme coin products.
Analysts warn that meme coins remain volatile. DOGE's price rose 0.94% after the fund announcement, reflecting market sensitivity. However, its $50 billion valuation underscores institutional confidence.
Grayscale's Dogecoin Trust Highlights the Blurred Lines Between Meme Assets and Institutional Finance. With a market cap of $50 billion and favorable political trends, Dogecoin's evolution from an internet joke to a financial tool illustrates the changing landscape of cryptocurrency.
As regulators consider ETF applications and Trump’s policies are implemented, Grayscale's bet on Dogecoin could reshape how institutions interact with digital assets once reserved for a specific demographic.
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