Investors in Dogecoin (DOGE) can now tap into the growing excitement around the leading memecoin with the launch of the 21Shares 2X Long Dogecoin ETF (TXXD), which began trading on the Nasdaq Exchange recently. This new leveraged product aims to deliver twice the daily performance of DOGE, minus fees and expenses, catering specifically to those willing to take on additional risks for potentially higher rewards.
Michael Friedman, director of U.S. Capital Markets at 21Shares, expressed enthusiasm for the project, stating, “We are excited about Doge and the momentum we’ve seen from the community.” This launch marks 21Shares’ entry into leveraged products, with plans for additional similar offerings in the pipeline.
The recent introduction of the TXXD fund comes at a time when altcoin-focused ETFs are gaining traction. Following this trend, the Grayscale fund is set to debut its non-leveraged Dogecoin fund early next week, while the U.S. Securities and Exchange Commission is currently reviewing 21Shares’ application for its own non-leveraged Dogecoin fund.
The uptick in these products reflects heightened market demand. Earlier this year, the Rex-Osprey Dogecoin ETF saw a strong market entry, generating significant inflows since its launch in September. Other funds, such as the Bitwise Solana fund, have also performed well, accumulating over $600 million in net investments shortly after debuting.
Though leveraged ETFs like TXXD are designed for short-term trades and are considered riskier than their non-leveraged counterparts, the collaboration between 21Shares and House of Doge—the commercial arm of the Dogecoin Foundation—aims to create engaging offerings tailored to risk-tolerant investors. House of Doge CEO Marco Margiotta noted that this new ETF demonstrates the strength and enthusiasm of a growing community, which continues to influence the future of cryptocurrency.
Despite the excitement around the new ETF, it’s essential to recognize that Dogecoin has faced challenges recently, with a nearly 19% decline in market value over the past month, reflecting broader trends in the cryptocurrency market. Currently, DOGE is trading at around $0.16, which is significantly lower than its peak of $0.73 in 2021. However, the continued interest in innovative financial products surrounding Dogecoin and other altcoins showcases a resilient market that adapts to investor needs.