Grayscale Launches Dogecoin Fund Targeting Altcoin Enthusiasts

Grayscale Investments said it is launching an investment fund aimed at Dogecoin, a cryptocurrency initially launched as a joke, as the firm looks to tap into growing enthusiasm around so-called altcoins.

Grayscale Investments has announced the launch of an investment fund focused on Dogecoin (CRYPTO: DOGE), a cryptocurrency that was initially created as a joke.

Grayscale, a leading digital currency asset manager, is aiming to capitalize on the increasing interest in alternative cryptocurrencies, known as altcoins, with this new trust.

The Grayscale Dogecoin Trust will provide investors with a way to gain exposure to Dogecoin, which Grayscale describes as a "paradigm shift in global financial accessibility."

According to Grayscale, the cryptocurrency boasts low transaction fees, rapid transfer speeds, and a vast, passionate community.

Grayscale's product and research head, Rayhaneh Sharif-Askary, stated that Dogecoin is facilitating the participation of groups that are typically underserved by traditional financial infrastructure.

The trust, designed to follow Dogecoin's market price, is available to qualified individual and institutional accredited investors, according to Grayscale.

Since Donald Trump's re-election as US president last November, cryptocurrencies like Bitcoin have seen a remarkable surge in value.

Investors anticipate that Trump will implement policies favorable to cryptocurrencies, such as clear regulatory frameworks and lower taxes on digital assets.

In contrast, the previous Biden administration aimed to clamp down on cryptocurrency companies, with regulators filing several enforcement actions to bring these firms into compliance with existing securities laws.

Software engineers Billy Markus and Jackson Palmer created Dogecoin in 2013 as a jest, intending to satirize other cryptocurrencies that were rapidly increasing in value during a bubble.

Despite its humble origins, Dogecoin has since ascended to become the eighth-largest cryptocurrency, boasting a market capitalization of over $45 billion (£36bn).

This growth can be attributed largely to the enthusiastic support of entrepreneur Elon Musk for the memecoin.

Musk, a prominent backer of Trump's re-election campaign, was appointed by Trump to head an informal advisory body called the Department of Government Efficiency, whose initials (DOGE) also happen to align with the cryptocurrency's ticker symbol.

Dogecoin's price has skyrocketed more than threefold over the past year, with a surge in value following the November election, similar to other crypto tokens.