Grayscale Launches Dogecoin Trust for Institutional Investors
Grayscale Investments has launched a Dogecoin Trust, allowing institutional and accredited investors to access the meme coin without self-custody complexities. Key points include:
- The Dogecoin Trust aims to institutionalize DOGE, which has a market cap of nearly $50 billion.
- Grayscale positions DOGE as a tool for financial inclusion and grassroots activism.
- The trust is modeled after Grayscale’s existing single-asset investment trusts.
- Transaction costs and scalability were considered in adding Dogecoin to their offerings.
- Grayscale's move follows the success of its Bitcoin and Ethereum trusts.
- There are ongoing discussions about a potential spot Dogecoin ETF.
- Other asset managers, like Bitwise, are seeking regulatory approval for a spot Dogecoin ETF.
Additionally, Grayscale filed to convert its XRP Trust into an ETF, which would list on the NYSE. Currently, the XRP Trust manages over $16 million worth of XRP. The proposed ETF aims to track XRP's price while deducting operational fees.
Other firms, including WisdomTree and Purpose Investments in Canada, are also pursuing XRP-focused ETFs to offer investors exposure to XRP's price movements.