Dogecoin, the meme cryptocurrency that began as an internet joke, is about to make a significant leap into the world of traditional finance.
21Shares, a cryptocurrency exchange-traded fund, has partnered with House of Doge to launch a Dogecoin exchange-traded fund on the SIX Swiss Exchange, Switzerland's leading stock exchange.
The creation of this investment fund not only validates the growing interest in Dogecoin as a digital asset, but also opens up new opportunities for institutional and retail investors to access this cryptocurrency in a more regulated and transparent manner. Listing on the SIX Swiss Exchange, known for its rigorous regulatory framework, could attract a broader investor audience, further consolidating Dogecoin's position in the global financial ecosystem.
Dogecoin: From 'meme' to financial recognition
While the introduction of a new crypto fund is, in itself, a milestone for the cryptocurrency market, what stands out from 21Shares' recent announcement is the evolution of Dogecoin from its origins as a simple parody or 'joke' on crypto assets to becoming a digital asset with a loyal fan base and considerable market capitalization.
The company emphasizes that this meme cryptocurrency has gained widespread market recognition thanks to its maturity and legitimacy, key factors for its inclusion in the financial world. This new investment product will allow investors to track the price of DOGE without having to acquire the cryptocurrency directly, facilitating investment through more conventional financial channels.
Duncan Moir, President of 21Shares, spoke about the partnership with House of Doge and he pointed that Dogecoin has transformed into a cultural and financial movement which is driving the widespread adoption of cryptocurrencies, so its new ETF offers investors a regulated way to participate in this project.
For his part, Jens Wiechers, a member of the House of Doge Advisory Board and co-executive director of the Dogecoin Foundation, emphasized that Dogecoin has been a fun and accessible form of P2P currency for years, which has proven its real-world utility in payments, tipping, and charitable donations. Now, with institutional support and a market listing, Wiechers hopes to unlock your full potential.
At the end of January of this year, investment firms Osprey Funds and Rex Shares filed the first memecoin-based spot ETFs, including Dogecoin, with the SEC. Later that same month, Grayscale and Bitwise joined the race, filing their respective applications for regulatory approval of DOGE on the stock exchange. Although these applications have yet to receive a response from the US SEC, they represent a bold step for this cryptocurrency, opening new doors for institutional adoption.
Dogecoin was born as a 'joke' fork of Litecoin
Created in 2013 by programmers Billy Markus and Jackson Palmer, Dogecoin emerged as a fork of Litecoin, using cryptocurrency technology to create a fun and accessible online payment system. Its image, based on the popular Shiba Inu dog meme, earned it a rapid adoption and an active social media community.
In its early days, Dogecoin was known for its low transaction fees and speed, making it popular for small online transactions and tipping. However, its value remained relatively low until celebrities like Elon Musk began publicly showing their support, driving its price to unprecedented levels.
Today, Dogecoin remains one of the meme cryptocurrencies More popular, Although its value is considerably lower than its all-time high, it has managed to maintain a loyal community and widespread adoption across various sectors, including e-commerce and charitable donations. Furthermore, Dogecoin is available on major cryptocurrency exchanges around the world, such as Biti2Me, thus facilitating access to an even wider audience.
DOGE's listing on the Swiss Stock Exchange
The listing of a Dogecoin exchange-traded product on the SIX Swiss Exchange represents a significant milestone for the meme cryptocurrency. Switzerland, known for its crypto-friendly regulatory approach, offers a safe and secure environment for investors. The SIX Swiss Exchange, for its part, is one of the main stock exchanges in Europe, with a reputation for transparency and liquidity.
By listing on this exchange, Dogecoin becomes more accessible to institutional investors, investment funds, and asset managers who, for regulatory or risk reasons, cannot invest directly in cryptocurrencies. Therefore, the Dogecoin ETF on this exchange will offer a regulated and transparent way to gain exposure to the cryptocurrency, without the need to manage digital wallets or private keys.
In his statements, Wiechers also commented that he believes this initiative provides "A regulated path for institutions to participate and amplify the 'Dogecoin is Money' vision, while still honoring the spirit of the community.".
The institutional leap into the mainstream
Listing on the SIX Swiss Exchange could mark the beginning of a new era for Dogecoin, boosting its institutional adoption and legitimacy as a digital asset. If the ETP is successful, other exchanges and fund issuers are likely to consider launching similar products, further expanding access to Dogecoin for investors worldwide.
Sarosh Mistry, President and CEO of Sodexo North America and Director-Elect of House of Doge, says, “Institutional products will empower new types of investors to participate in the Dogecoin ecosystem, reinforcing its role as a leader in the future of digital assets.”
It is important to note that this investment fund, which will be listed under the ticker DOGE on the SIX Swiss Exchange, is 100% backed by physical assets to offer a seamless and transparent way to gain exposure to Dogecoin. Additionally, 21Shares filed an S-1 registration to launch a Dogecoin ETF in the US market..
Therefore, although Dogecoin remains a volatile asset, 21Shares' recent moves validate its growing legitimacy as a digital asset. If these funds receive the green light, they could pave the way for further integration of cryptocurrencies into the traditional financial system.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
