Despite community backlash, Bloomberg senior ETF analyst Eric Balchunas maintains an unwavering conviction that Dogecoin lacks utility.
He took to X (formerly Twitter) on Wednesday to reiterate this sentiment, questioning the utility that Dogecoin provides. Balchunas asked the aggrieved DOGE community what use case the meme coin offers amid objections to his earlier “no utility” comment.
Balchunas Unmoved on Dogecoin Utility Debate
For perspective, the Bloomberg ETF expert shared on Tuesday that the first-ever US ETF tracking the performance of Dogecoin, the largest meme coin by market cap, will launch later in the week. Adding to the announcement, he stated that the investment vehicle will be the first to “hold something that has no utility on purpose.”
However, the comment sparked reactions from the Dogecoin community, which had conflicting opinions. Some argued that despite its meme origin, the DOGE has use cases in tipping and macro payments. Others say that Dogecoin can be compared to professional sports and has a similar use case to Bitcoin.
However, Balchunas added that Dogecoin was literally created by two guys as a joke. “So what’s the utility?” he asked.
Nonetheless, he noted that his comments are not meant to judge Dogecoin, as he is “fine with meme coins.” However, he wants DOGE enthusiasts, known as “Shibes,” to simply acknowledge that the token was merely for entertainment and highly speculative.
First US Dogecoin ETF to Launch on Thursday
Meanwhile, Balchunas revealed that the Rex Osprey Dogecoin ETF would launch in the US on Thursday, marking the debut of the meme coin ETF era. It would be listed with the ticker DOJE under the Investment Company Act of 1940. This choice gave it an edge in the race to launch a Dogecoin-focused ETF.
The fund would hold at least 80% of its net assets in Dogecoin and the rest in other vehicles that provide exposure to the token.
Conversely, filings under the Securities Act of 1933 (Act 33) continue to face roadblocks. The US SEC recently delayed a decision on the Bitwise Dogecoin ETF, asking for a longer period to assess the proposed rule change.
Meanwhile, several other altcoin ETFs are also awaiting approval on the US SEC’s desk, including the Solana, Litecoin, and XRP ETFs.
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