Grayscale’s launch of the Dogecoin Trust marks a significant milestone in the growing interest from institutional investors in the memecoin, with its potential for global financial accessibility and rapid transfer speeds.
Grayscale has launched a new trust offering exposure to dogecoin (DOGE), marking the latest development in the growing interest from institutional investors in the memecoin.
Dogecoin is a decentralized digital currency that was created in December 2013 as a parody of the cryptocurrency market.
Initially, it was intended to be a joke, but its popularity grew rapidly due to its unique features and community-driven approach.
The coin's logo features a Shiba Inu dog, which became an iconic symbol of the cryptocurrency.
With a maximum supply of 5 quadrillion coins, Dogecoin has a deflationary mechanism that reduces the money supply over time.
The launch of the ‘a new trust’ , which charges a management fee of 2.5%, comes as no surprise given the asset’s increasing popularity and potential for international remittances. According to Grayscale‘s head of product & research, Rayhaneh Sharif-Askary, ‘dogecoin represents a paradigm shift in global financial accessibility‘ due to its low transaction costs and rapid transfer speeds.
This move is also seen as a response to the growing interest from institutional investors in the crypto industry. Since ‘President Trump took office with promises of promoting the crypto industry’ , several asset managers have filed applications for memecoin exchange-traded funds (ETFs), including DOGE. This is an unthinkable move just months ago under the previous administration and its SEC head Gary Gensler.
Gary Gensler is an American economist and regulatory expert.
He served as the 33rd Chair of the Commodity Futures Trading Commission (CFTC) from May 26, 2021.
Prior to this role, he was a professor at MIT Sloan School of Management.
Gensler has also worked in various positions within the US government, including serving as the Under Secretary for Domestic Finance at the Treasury Department under President 'Barack Obama'.
With a market capitalization of nearly $50 billion, DOGE is the world’s largest memecoin. Wrapping the token in an ETF or trust could attract more capital from institutional investors. The token’s price has already increased three-fold over the past year, with a particularly large move happening in the immediate weeks after the November election.
The launch of this trust by Grayscale is expected to further boost DOGE’s popularity and potentially lead to more institutional investment in the asset.
