Dogecoin gets another ETF but Wall Street’s memecoin appetite remains muted

The structured products market continues its slow embrace of the broader cryptocurrency landscape, highlighted by the recent launch of a new Dogecoin (DOGE) Exchange-Traded Fund (ETF) in international markets. While the introduction of this regulated investment vehicle marks a technical milestone for the original memecoin, institutional enthusiasm for highly speculative digital assets remains notably subdued.

The new ETF provides traditional investors with easier, regulated exposure to DOGE’s price movements without the complexities of direct crypto custody. Proponents argue that listing DOGE in an ETF wrapper lends a degree of legitimacy previously reserved for Bitcoin (BTC) and Ethereum (ETH) ETFs. However, trading volumes and initial inflows suggest a cautious approach from major institutional players and wealth management firms.

Wall Street’s primary hesitation stems from the inherent volatility and lack of fundamental utility characterizing memecoins. Unlike BTC or ETH, which are increasingly viewed as digital commodities or network infrastructure, DOGE’s value is driven almost entirely by community sentiment, social media hype, and celebrity endorsements. For compliance-driven institutions, this speculative nature presents substantial risk management challenges.

Furthermore, while spot Bitcoin ETFs have seen massive success, compliance departments are wary of approving memecoins for inclusion in broad mandates. Regulatory uncertainty, particularly from the U.S. Securities and Exchange Commission (SEC), adds another layer of complexity, as the path for non-major crypto assets to receive regulatory approval is extremely hazy. Fund managers are prioritizing assets that offer clearer regulatory pathways and predictable long-term adoption metrics.

In conclusion, the launch of the latest Dogecoin ETF is a symbolic victory for the asset’s retail community. Yet, until memecoins can demonstrate a pivot toward sustained utility or regulatory clarity improves dramatically, large institutional capital will likely continue to treat them as fringe assets, reserving their primary appetite for the established leaders of the crypto market.

Source: Dogecoin gets another ETF but Wall Street’s memecoin appetite remains muted