Once dismissed as a joke, Dogecoin ($DOGE) is now making its way into institutional finance. Grayscale, a major US-based asset management firm, has launched a Dogecoin Trust, arguing that the token’s low transaction fees and fast processing times make it an effective tool for financial inclusion.

This could boost the evolving perception of $DOGE, which has traditionally been seen as a speculative asset rather than a serious investment vehicle.

This latest development has boosted the memecoin, according to data from CoinMarketCap. Although the price is down 7% in the past week, it has seen a 3% increase in the daily chart, trading at $0.336 at the time of publication.

We are proud to announce a new single-asset crypto investment fund, Grayscale Dogecoin Trust $DOGE.

much wow, big excite

Available to eligible accredited investors.

Read the press release: https://t.co/tV5TC8uoHV pic.twitter.com/cqqJxVRkIC

— Grayscale (@Grayscale) January 31, 2025

Grayscale’s Bet on Dogecoin

Grayscale announced the launch of its Dogecoin Trust on Friday, further expanding its suite of crypto investment products. The introduction of this trust comes amid a broader shift in the crypto investment landscape.

The Connecticut-based firm is among the companies also pushing to list spot $XRP exchange-traded fund on US stock exchanges. Recently, the company reportedly filed an application with the SEC to convert its $XRP Trust into an ETF.

Since Donald Trump’s recent election victory, several fund managers have filed for Dogecoin ETFs, a move that would have been unlikely under the previous administration. With a market capitalization nearing $50 billion, $DOGE remains the largest memecoin, and institutional products like trusts and ETFs could drive further capital inflows.

Dogecoin’s price has been highly volatile in recent months. In early January, $DOGE traded around $0.31 before surging above $0.40 by mid-month, peaking just before Trump’s inauguration. However, following his swearing-in, the token dropped back to $0.30 before stabilizing at around $0.32.

$DOGE Daily Price Chart, Source: CoinMarketCap

Dogecoin and the ETF Race

One of the biggest catalysts for $DOGE’s price could be the approval of a spot Dogecoin ETF. Bitwise recently filed an application with the US Securities and Exchange Commission for a $DOGE-based exchange-traded fund. The SEC previously approved Bitcoin ETFs, which initially triggered short-term corrections before leading to long-term price appreciation.

Market participants are now watching how the SEC, under new leadership, will approach $DOGE ETFs. According to the prediction platform Polymarket, there is a 56% chance that such an ETF will receive approval in 2025. If it does, the question remains whether the news will spark a rally or trigger a sell-off, similar to what happened with Bitcoin ETFs.