Grayscale Investments just launched Grayscale Dogecoin Trust, a new product designed to give big investors a chance to get into Dogecoin (DOGE) without actually buying the coin.
According to Rayhaneh Sharif-Askary, Grayscale’s head of Product & Research in the press release, “Dogecoin has matured into a potentially powerful tool for promoting financial accessibility.” She added that Dogecoin’s speed and low cost could help those who don’t have access to traditional banking systems.
The Grayscale Dogecoin Trust is a closed-end fund that is only open to accredited investors, meaning people and institutions with a certain level of wealth. This fund is entirely invested in Dogecoin. So in short, the trust gives investors a way to be a part of Dogecoin’s growth without needing to buy the coin themselves.
Grayscale also sees this as a way to bring Bitcoin’s original goals of financial inclusion to life. According to Grayscale, Dogecoin’s characteristics make it a great option for financial inclusion in places where traditional banking isn’t available.
Grayscale has made it clear that this product is speculative, which means it’s risky. Shares in the trust could be worth more or less than the actual value of the Dogecoin it holds. Grayscale also warned that the trust is illiquid, meaning investors can’t cash out easily.
According to the press release, the firm hopes to convert the Dogecoin Trust into an ETF in the future once the SEC becomes friendly towards crypto products.
However, this trust is coming just mere weeks after the Department of Government Efficiency (DOGE) began under President Trump. Other fund managers have begun investing in Dogecoin, and Bitwise recently filed for a Dogecoin ETF.
Although Dogecoin Trust is only accessible to accredited investors, Grayscale said it hopes to become accessible to everyone soon, but only if the market changes.
