Grayscale Launches Dogecoin Trust, Betting the Memecoin Can Be a Serious Investment Vehicle

Once dismissed as a joke, Dogecoin (DOGE) is now making its way into institutional finance. Grayscale, a major US-based asset management firm, has launched a Dogecoin Trust

Dogecoin (DOGE), once dismissed as a joke, is now entering the realm of institutional finance. Grayscale, a major asset management firm based in the United States, has announced the launch of a Dogecoin Trust, highlighting the token's potential for financial inclusion due to its low transaction fees and fast processing times.

This development could shift the narrative around DOGE, which has largely been viewed as a speculative asset rather than a serious investment vehicle.

According to data from CoinMarketCap, the latest news has provided a boost to the memecoin. While the price is down 7% over the past week, it has seen a 3% increase on the daily chart, trading at $0.336 at the last glance.

Grayscale Announces Bet on Dogecoin

Grayscale announced the launch of its Dogecoin Trust on Friday, expanding its lineup of crypto investment products. The introduction of this trust comes as the crypto investment landscape continues to evolve.

The Connecticut-based firm is also part of the group pushing to list a spot XRP exchange-traded fund on US stock exchanges. According to recent reports, the company filed an application with the SEC to convert its XRP Trust into an ETF.

With Donald Trump's recent election victory, several fund managers have filed for Dogecoin ETFs, a move that was unlikely under the previous administration. Being the largest memecoin with a market capitalization close to $50 billion, DOGE could see more institutional products like trusts and ETFs drive capital inflows.

Dogecoin's price has been highly volatile in recent months. Early January saw DOGE trading around $0.31 before rising above $0.40 by mid-month, peaking just before Trump's inauguration. However, following his swearing-in, the token dropped back to $0.30 before finding support at around $0.32.

Dogecoin ETF Race Heats Up

One of the biggest potential catalysts for DOGE price is the approval of a spot Dogecoin ETF. Bitwise recently filed an application with the US Securities and Exchange Commission for a DOGE-based exchange traded fund. The SEC previously approved Bitcoin ETFs, which initially saw short-term corrections before leading to long-term price appreciation.

Now, market participants are watching how the SEC, under new leadership, will handle DOGE ETFs. According to prediction platform Polymarket, there is a 56% chance that such an ETF will be approved by 2025. If approved, it remains to be seen whether the news will spark a rally or trigger a sell-off, as was the case with Bitcoin ETFs.