A brand new exchange-traded fund (ETF) focused on Dogecoin could launch as early as this week. Called the Rex-Osprey DOGE ETF and trading under the ticker $DOJE, it would give investors in the U.S. a way to directly invest in the price of Dogecoin without owning the coin itself. This would be the first Dogecoin ETF in the U.S., and it's generating a lot of excitement from both crypto fans and traditional investors.

The companies behind this ETF, REX Shares and Osprey Funds, are also responsible for another crypto ETF tied to Solana. Their strategy of using a faster approval route through something called the “40 Act” has helped speed up the process. If $DOJE officially launches this week, it would mark a big step forward for meme coins, showing they are becoming part of more mainstream investment options. However, their 'meme' status would likely remain in tact, as DOGE and essentially every asset in this sector is defined by the intentionally deliberate lack of development activity. See the nearly non-existent development activity leaders for meme coins below.

Dogecoin's initially reacted somewhat positively to the news, which was the case when both the Bitcoin and Ethereum ETF's were drawing toward likely approval. However, there has been a cool-off period from that initial FOMO jump. Retail traders, and likely some institutionals as well, can likely spark some strong demand and increased speculation in the days following the launch. But until it is a certainty to be launched, this price action will all be based on anticipation rather than fact.

There was a clear moment of face-palming from the crowd that tried to get in early on the initial news of this likely approved DOGE ETF. This group essentially bought at the local top on August 15th, but rumors essentially fizzled out until these past few days (three weeks after the hype). And with an estimated 93% likelihood of approval, the FOMO has been met with some mild price climbs this time around. But as we've learned from previous hype around ETF's, the extent of its rally will likely go only as far as its actual impact can take it. DOGE FOMO, in many previous instances, has often been one of the primary examples of selling when the crowd is buying.

We can see how DOGE whale transactions initially drove prices down, very likely indicative of profit taking on the initial ETF rumors in mid-August. At the turn of the month into September, these whales began to become active again (accumulation near the bottom). And yesterday, once again, it appears that they took profit right before the mini Dogecoin price rally cooled off again.

One tier to keep an eye on is the wallets holding 1M to 10M DOGE. Their accumulation really began right after a large price dump on August 25th. And just as the likelihood of a Dogecoin ETF began to be probable, they really began to accumulate. They currently hold 10.91B and 7.23% of the meme coin's supply. These are nearly 4-year highs.

There’s also growing belief that a Dogecoin ETF isn't just good for DOGE, as it could potentially open doors for other meme coins, too. Some traders are betting on newer tokens like Maxi Doge (MAXI), a satire-themed coin that’s raised $2M in its presale. MAXI hopes to ride the wave of interest sparked by the Dogecoin ETF and offer even bigger gains to early investors.

Overall, the excitement around the $DOJE ETF highlights how meme coins are evolving from internet jokes into serious financial products. With more investors gaining access through traditional markets, and with the chance of institutional involvement and whale accumulation, Dogecoin could enjoy an impressive rally. But this is a clear wait-and-see for the time being. If you want to get in on a meme coin due to an ETF launch, do so with the understanding that this could be one of the most crowd-speculative driven price behaviors we've seen in years.

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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.