"Though REX and Osprey did not launch the dogecoin ETF under the new ruleset, instead taking an alternative route involving separate legal provisions to ensure it won the race to market, analysts expect the SEC's new listing standards to tee up a proliferation of crypto ETFs in the US. Under the ruleset, any crypto coin already listed on a market-like Coinbase Derivatives-that participates in the Intermarket Surveillance Group, a network of organizations that monitors for fraudulent activity, would automatically qualify for the ETF treatment."
"Whatever the merits of the bitcoin investment case, the argument for memecoins is shakier. Typically modelled after a celebrity or popular internet reference, memecoins generate no revenue or cash flow, so their price depends entirely on caprices of the public mood and the vibes among investors. In the case of dogecoin, the supply of coins is even periodically diluted. "With a memecoin, it would be hard for a financial advisor to feel comfortable buying that for a client," says Armour."
REX and Osprey did not use the SEC's new listing rules to launch a dogecoin ETF, instead pursuing separate legal provisions to reach market first. The SEC's new standards allow any crypto already listed on a market-like venue such as Coinbase Derivatives that participates in the Intermarket Surveillance Group to automatically qualify for ETF treatment. Analysts expect these standards to prompt a proliferation of crypto ETFs, including levered, inverse, and spot products. Memecoins lack revenue and cash flow, have volatile sentiment-driven pricing, and in dogecoin's case face periodic supply dilution, raising suitability concerns for financial advisors. A regulatory view emphasizes disclosure over merit.
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