Basic Concept and Operating Principle of ETF

ETF (Exchange Traded Fund) is a type of fund listed on exchanges that combines the trading convenience of stocks with the diversified risk of funds. Investors can trade ETFs like buying and selling stocks, and the fund’s asset portfolio is transparent with lower management fees. ETFs ensure that market prices closely align with net asset values through a subscription and redemption mechanism, providing opportunities for arbitrage.

The development history of cryptocurrency ETF

Since the first Bitcoin ETF application in 2013, cryptocurrency ETFs have evolved from a budding concept to rapid growth. In 2021, Canada approved the first Bitcoin ETF, and in 2024, the U.S. SEC approved 11 Bitcoin spot ETFs, leading to a surge of global capital. In July 2024, Ethereum spot ETFs were also approved for listing, marking the gradual maturation of mainstream crypto asset ETFs.

The current status of the Dogecoin ETF application

In early 2025, several institutions including Bitwise, Grayscale, and Osprey Funds submitted applications for a Dogecoin ETF to the US SEC. Grayscale also converted its Dogecoin trust into an ETF and entered the formal review process. The SEC has not yet approved any Dogecoin ETF, with the review focusing on market compliance, manipulation risks, and investor protection. The approval process is expected to take some time.

Market Impact and Investment Opportunities

If the Dogecoin ETF is approved, it will significantly lower the investment threshold, attracting funds from traditional institutions and retail investors, thereby boosting the price of DOGE and increasing market liquidity. The listing of the ETF will also change the investor structure by introducing more rational institutional funds, enhancing market stability. However, after the ETF is listed, there may still be a price correction due to unmet market expectations or increased volatility.

Investment risks and regulatory challenges

Dogecoin ETF faces multiple risks such as regulatory policies, technological lag, and community instability. The SEC focuses on compliance, market manipulation, and investor protection; if the review fails, the launch of the ETF will be delayed. In addition, DOGE itself is highly volatile, and market sentiment is easily influenced by celebrities and the community, so investors need to carefully assess the risks.

Conclusion

Dogecoin ETF is an important driver for the further mainstreaming of DOGE. If it can be successfully listed, it will bring more funds and participants to the crypto market, promoting the deep integration of cryptocurrency with traditional finance. However, investors still need to pay attention to regulatory policies and market risks, and reasonably allocate their investment portfolios.