A Dogecoin exchange-traded fund is about to hit the market.

This week, Rex Shares and Osprey Funds announced the imminent launch of DOJE, an ETF that tracks the performance of the popular memecoin.

“DOJE will be the first ETF to deliver investors exposure to the performance of the iconic memecoin, Dogecoin,” Rex-Osprey posted on X.

While DOJE will be the first Dogecoin ETF, it’s not a spot ETF like the ones the SEC approved for Bitcoin and Ethereum last year.

Instead, it’s the quirkier, rule-hugging cousin: a so-called 40-Act ETF.

So, what’s the difference?

Spot crypto ETFs directly hold the underlying cryptocurrency, but a 40-Act ETF offers indirect exposure to the underlying cryptocurrency via futures, swaps, or other index-based instruments.

Rex-Osprey’s prospectus states that the fund will invest approximately 80% of its assets in Dogecoin instruments, which may include derivatives such as futures or swaps.

Rex-0sprey used this workaround to launch its Solana staking ETF in July.

Flurry of filings

Meanwhile, the SEC is reviewing spot Dogecoin ETF applications from issuers like Grayscale, Bitwise, and 21Shares.

Those filings are among more than 90 exchange-traded products under review by the SEC, including altcoin applications for cryptocurrencies such as Solana, XRP, and Litecoin.

The SEC’s decision deadline for several of those applications begins in mid-October, with analysts like Balchunas predicting high approval chances for major altcoins like Litecoin and XRP.

Proponents of these altcoins hope an ETF will buttress their tokens’ prices, as has been the case for Bitcoin and Ethereum.

Massive institutional inflows into Bitcoin and Ethereum have catapulted both cryptocurrencies to new all-time highs.

Bitcoin ETFs drew in $2 billion in only the first three trading days after approval and amassed $107 billion in assets in one year, becoming the most successful ETF launch in history in the process.

Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at [email protected].