Grayscale Investments is launching the Grayscale Dogecoin Trust, boosting institutional adoption among the enhanced interest in memecoins.
Grayscale Investments, a leading crypto asset management firm, has introduced a new investment fund dedicated to the most popular and enduring memecoin – DOGE.
Grayscale Dogecoin Trust is available to eligible individuals and institutional accredited investors. It adds to the Grayscale portfolio of single-asset investment trusts, each designed to provide investors with exposure to specific cryptocurrencies. The firm currently has almost 20 such investment offerings for both large market cap assets like Bitcoin or Ethereum and less-known cryptocurrencies like Horizen (ZEN) or Filecoin (FIL). Last December, Grayscale launched two new investment funds for Lido and Optimism’s governance tokens. The firm is reportedly considering over 30 other crypto assets for such investment funds.
The new trust offers a regulated way for institutional and accredited investors to gain exposure to Dogecoin. It can simplify the investing process for this memecoin, making it more accessible to a broader range of investors who might have been hesitant due to regulatory or technical hurdles. Besides, it signals growing institutional acceptance and confidence in Dogecoin as a legitimate though risky asset.
Overall, the inauguration of US President Donald Trump, known for his crypto-friendly stance, and the consequent launch of the two memecoins linked to the President’s family – $TRUMP and $MELANIA – has reinstated investor interest in the peculiar cryptocurrency class inspired by memes and media phenomena.
Memecoins are considered riskier investment choices than other crypto tokens aiming to solve specific financial or technological challenges, as they often lack inherent utility or underlying value. Their market worth is primarily driven by online communities and social media trends. Nevertheless, even traditional asset managers embrace this asset class today and want to create exchange-traded funds (ETFs) for select memecoins.
Compared to the newly minted memecoins, Dogecoin is particularly resilient. The token has been around for over a decade – since 2013. The mass public interest in this Shiba Ina-themed cryptocurrency first sparked in 2023 due to Elon Musk’s supporting comments. At that time, the market value of all Dogecoins in circulation rose to more than $50 billion for the first time. Today, the DOGE market cap remains similar, making the memecoin one of the top 10 cryptocurrencies globally.
