Grayscale Investments has unveiled a dedicated investment fund for Dogecoin, the leading memecoin by market capitalization, the asset manager announced on January 31.
The Grayscale Dogecoin Trust provides institutional investors with exposure to Dogecoin, which is described as “the native asset of the Dogecoin blockchain, an open-source, peer-to-peer digital currency originally forked from Litecoin, which itself stems from Bitcoin.” This investment vehicle is not available to retail investors.
Dogecoin operates on a proof-of-work (PoW) consensus mechanism akin to Bitcoin, though it features more efficient transaction verification and does not have a capped supply of DOGE.
“Dogecoin has evolved into a potentially influential instrument for enhancing financial inclusivity,” stated Rayhaneh Sharif-Askary, Grayscale’s head of product and research.
Surging Interest in Memecoins
This launch comes at a time of heightened interest in memecoins, with even traditional financial institutions exploring opportunities in the space.
On January 18, former U.S. President Donald Trump’s advisory team introduced the Official Trump (TRUMP) memecoin on the Solana blockchain in anticipation of Trump’s presidential campaign.
The release of TRUMP triggered a significant wave of investor interest, causing a surge in Solana network activity, which led to intermittent congestion for several days.
Additionally, on January 21, asset managers Osprey Funds and REX Shares submitted filings to introduce exchange-traded funds (ETFs) for memecoins, including DOGE, TRUMP, and Bonk.
Expanding Crypto Investment Offerings
With the launch of the Dogecoin fund, Grayscale continues to broaden its portfolio of single-asset cryptocurrency investment products.
In December, the firm introduced two new funds focused on governance tokens for Lido (LDO) and Optimism (OP). Prior to that, in October, it established an investment fund centered on Aave’s governance token (AAVE) and expanded its list of potential investment assets to include approximately 35 altcoins such as Worldcoin (WLD), Pyth (PYTH), and Rune (RUNE).
Earlier in August, Grayscale rolled out three trusts targeting the native tokens of Sky (formerly MakerDAO), Bittensor, and Sui.
As the largest crypto asset manager globally, Grayscale oversees nearly $35 billion in assets under management (AUM) as of December. The firm is particularly known for its flagship Bitcoin (BTC) and Ethereum (ETH) investment products, including the Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).
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