Grayscale Bets on Dogecoin: Will Institutional Demand Push DOGE Price Higher?

Grayscale Investments announced the launch of its Grayscale Dogecoin Trust on Friday, offering institutional and accredited investors exposure to the meme-inspired cryptocurrency.

The move comes as Dogecoin’s market capitalization hits $50 billion, with its price tripling over the past year, according to CoinGecko data.

The token’s rally aligns with crypto-friendly policies under the Trump administration, including the creation of the Department of Government Efficiency (D.O.G.E.), signaling a shift toward regulatory openness.

The new trust charges a 2.5% annual management fee and mirrors Grayscale’s strategy with its XRP Trust, launched in September 2024. This follows the firm’s January 30 filing for a spot XRP ETF with the New York Stock Exchange, though plans for a Dogecoin ETF remain unconfirmed.

Trump-Era Policies Fuel Meme Coin Momentum

Dogecoin’s price surged over 328% in the past 12 months, with a notable spike following the November 2024 U.S. election.

President Trump’s pro-crypto stance, including the symbolic D.O.G.E. department, has spurred institutional interest. Since January, multiple asset managers have filed for meme coin ETFs—a stark contrast to the previous administration’s cautious approach under former SEC Chair Gary Gensler.

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Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, emphasized Dogecoin’s utility in the press release:

“Dogecoin has matured into a potentially powerful tool for promoting financial accessibility. We believe, as a faster, cheaper, and more scalable derivative of Bitcoin, Dogecoin is helping groups underserved by legacy financial infrastructure to participate in the financial system.”

Inside the Dogecoin Trust

The Grayscale Dogecoin Trust operates similarly to its single-asset products, providing daily subscriptions for qualified investors.

Unlike ETFs, the trust does not yet offer public trading, limiting access to accredited participants. Grayscale’s XRP Trust, launched in 2024, serves as a potential blueprint. The firm filed for an XRP ETF in January, but regulatory approval remains pending.

Originally created as a joke in 2013, Dogecoin now ranks among the top 10 cryptocurrencies by market cap. Its 2024 price surge reflects growing acceptance, bolstered by endorsements from figures like Elon Musk and policy shifts under Trump. The token’s daily trading volume averages $1.5 billion, per CoinMarketCap data.

Regulatory Risks and DOGE ETF Speculation

While Grayscale’s XRP ETF filing signals ambition, regulatory hurdles persist. The SEC has historically rejected crypto ETFs over market manipulation concerns. However, Trump’s administration has encouraged innovation, prompting firms to test boundaries with meme coin products.

Analysts caution that meme coins remain volatile. DOGE price rose 0.94% following the trust’s announcement, reflecting market sensitivity. Still, its $50 billion valuation underscores institutional confidence.

Grayscale’s Dogecoin Trust highlights the blurring line between meme assets and institutional finance. With a $50 billion market cap and political tailwinds, Dogecoin’s evolution from internet joke to financial tool exemplifies crypto’s shifting landscape.

As regulators weigh ETF applications and Trump’s policies unfold, Grayscale’s bet on Dogecoin could redefine how institutions engage with once-niche digital assets.