In recent weeks the exchange-traded funds sector in the United States has been a Doge eat Doge world, as several asset managers have clamoured to launch spots. Dogecoin ETFs.
But at least one fund issuer isn't hopping into the Doge-pile. Canary Capital is a cryptocurrency investment firm that specializes in cryptocurrency. The Shiba Inu inspired meme coin, however, has little bite for them.
Canary Capital CEO Steven McClurg stated Decrypt The CEO said this week his firm does not plan to create a Dogecoin ETF. He pointed to both the currency’s infinite supply and its inutility.
This company is among several others that are racing to expand their cryptocurrency-based offerings in response to the U.S. pivot towards a digital assets-friendly regime, under Donald Trump. Canary has already filed to launch spot funds based around Solana, XRP, Litecoin, and HBAR—but McClurg said the firm won’t join the DOGE ETF fray.
“I have a hard time putting [Dogecoin] in an ETF wrapper, because the coin is literally designed to go down in value and constantly increase in supply,” McClurg tell Decrypt.
“There's no limited supply there, so you're essentially putting something in an ETF wrapper that's designed to go towards zero,” He added.
Dogecoin, the eighth most valuable cryptocurrency in terms of market cap according to CoinGecko shows. The price is around $0.25 at the time of this article, which has dropped by almost half. The price of climbed up to the highest in over three years The December 2018 rate is $0.48
DOGE has no firm limit on its supply, which is a stark contrast to other cryptocurrencies like Bitcoin or XRP. Dogecoin mining yields 10,000 DOGE for each block. Tokens mined are then added to the overall supply, which is constantly growing.
Granted, there are other chains that have uncapped token supplies, including Solana—another asset that Canary aims to launch a fund for. There’s one key difference between his views: utility.
SOL, as a utility coin, is used for payments on the Solana Network. To trade meme coins like Official Trump, BONK, and Dogwifhat the network is used along with its native token. The token can also be used with decentralized apps and a wide range of games.
Meme coins, by comparison, are famed for their lack of utility—and Dogecoin, the original meme coin that was created as a joke back in 2013, exemplifies that ethos well. Although DOGE enthusiasts have developed protocols for launching meme coins and other collectibles, much like what happened with Bitcoin, these are niche products that only a small number of users use.
Dogecoin is a popular cryptocurrency that has attracted many loyal users, among them some notable ones. Tesla’s Elon Musk, who founded the company in 2001, is a Dogecoin fanatic. defended the cryptocurrency's unique tokenomics Last November, we wrote an article titled: “I think the flat inflation of Dogecoin, which means decreasing percentage inflation, is a feature, not a bug.”
Encouraged by the token's loyal fanbase, some asset managers have applied in recent weeks to roll out exchange-traded funds that track Dogecoin's price. Bitwise, which followed the example of Osprey & Rex Shares and filed a Dogecoin fund last month, has been following in their footsteps. Grayscale, meanwhile, launched its Dogecoin fund this week. Dogecoin Trust launchedSoon after submitting a conversion request to federal regulators, the fund will be converted into an ETF.
Investors in the United States have seen a surge of interest from investment firms to create new crypto-based exchange traded funds (ETFs). Issuers are now filing for these ETFs. Wide range of crypto currencies Bonk and XRP are examples of such names as Solana, Official Trump or XRP.
Applications for the new licenses come at a time when the U.S. is undergoing a series of regulatory and policy changes relating to digital assets, like the recent nomination of the U.S. Digital Assets Regulatory Authority. Chairman of the Securities and Exchange Commission is pro-crypto. Hester P. Peirce of SEC Commissioners stated that regulators must be able to operate out of their comfort zone. “mess” Created by the former administration
The tone shift—paired with the approval of spot Bitcoin and Ethereum ETFs last year—has ignited issuers’ hopes that the federal regulators could grant approvals to a slew of crypto-based investment vehicles in the coming years.
McClurg acknowledged that while SOL was more useful than DOGE in terms of utility, it wasn’t the main focus for Canary.
“It's like, ‘Hey, well, if we're doing these other ones, we might as well jump in and get in on the action if something happens,'” McClurg tell Decrypt SOL ETFs are required to file a SOL ETF.
Andrew Hayward is the editor