Market News

US Dogecoin ETF Surprises Markets with Stellar Initial Trading Performance

Dogecoin (DOGE) has surged 8% within 24 hours, outperforming major cryptocurrencies following the launch of DOJE—the first U.S. ETF dedicated to the meme coin.

Trading for the Rex-Osprey ETF began smoothly on Thursday, quickly exceeding the expectations set by Bloomberg Senior ETF Analyst Eric Balchunas, who predicted a modest $2.5 million in trading volume.

However, in a remarkable display of investor interest, DOJE achieved nearly $6 million in trading volume shortly into its debut session.

Balchunas expressed his surprise, stating, "My over/under got destroyed in the first hour of trading as DOJE already posted nearly $6M in volume," highlighting that most ETFs typically see under $1 million on their first day.

This DOJE ETF is unique as it is registered under the Investment Company Act of 1940, allowing investors direct access to spot Dogecoin through a Cayman Islands subsidiary.

In contrast, many crypto ETFs are established under the Securities Act of 1933 and are backed by the assets they represent.

Speculation is rife that additional Dogecoin ETFs, including those from Grayscale and Bitwise, may soon gain approval, with decisions expected by October 17.

Moreover, the recent rise in Dogecoin's price could be supported by the accumulation efforts of CleanCore Solutions, a publicly traded company collaborating with the Dogecoin Foundation.

CleanCore has recently acquired 100 million DOGE, lifting its total holdings to 600 million DOGE—valued at approximately $170 million.

Currently, Dogecoin is trading at around $0.286, marking a nearly 34% increase over the past month.