Introduction
21Shares has launched a 2X leveraged Dogecoin ETF on the Nasdaq Exchange, marking the firm’s first foray into leveraged crypto products. The move comes amid growing competition in the altcoin ETF space, with Grayscale also preparing to debut a non-leveraged Dogecoin fund next week, reflecting institutional efforts to meet rising demand for alternative digital asset exposure despite recent market volatility.
Key Points
- 21Shares' 2X leveraged Dogecoin ETF represents the firm's first leveraged product launch and follows their collaboration with House of Doge
- Multiple firms are racing to launch Dogecoin ETFs, with Grayscale expected to debut a non-leveraged version and the SEC reviewing 21Shares' separate non-leveraged application
- The altcoin ETF market is expanding rapidly, with Bitwise's Solana fund attracting over $600 million and Rex-Osprey's Dogecoin ETF seeing strong inflows since September
Leveraged Dogecoin ETF Targets Risk-Tolerant Investors
The 21Shares 2X Long Dogecoin ETF (TXXD) began trading on the Nasdaq Exchange on Thursday, aiming to deliver twice the daily performance of Dogecoin (DOGE) minus fees and expenses. This represents 21Shares’ first leveraged product, signaling a strategic expansion into more complex crypto investment vehicles. Michael Friedman, director of U.S. Capital Markets at 21Shares, told Decrypt: “We are excited about Doge and the momentum we’ve seen from the community. The 21Shares 2x Long Dogecoin ETF is our first foray into levered products.”
Like other leveraged ETF products, TXXD is inherently riskier than non-leveraged counterparts and targets short-term use by risk-tolerant investors. The launch comes as Dogecoin, the leading memecoin with a market capitalization exceeding $23 billion, has fallen nearly 19% in the last 30 days amid broader crypto market declines. Currently trading around $0.16, DOGE remains more than 78% below its 2021 all-time high of $0.73, presenting both opportunity and significant risk for leveraged exposure.
Altcoin ETF Competition Intensifies
The 21Shares leveraged Dogecoin ETF enters a rapidly expanding altcoin ETF market. Grayscale is expected to debut its own non-leveraged Dogecoin fund early next week, while the U.S. Securities and Exchange Commission continues to review a separate 21Shares application for a non-leveraged Dogecoin ETF. This regulatory scrutiny highlights the ongoing evaluation process for crypto investment products despite growing market demand.
Other recent altcoin fund launches include Solana ETFs from Bitwise Asset Management and VanEck, plus an XRP fund from Canary Capital. The Bitwise Solana fund has generated particular interest, attracting more than $600 million in net investments since debuting late last month. Meanwhile, the Rex-Osprey Dogecoin ETF, which invests in the token through a Cayman Islands subsidiary, debuted in September with strong inflows, and its issuers have applied for their own leveraged Dogecoin fund.
Strategic Partnerships and Market Positioning
The leveraged Dogecoin ETF represents 21Shares’ latest collaboration with House of Doge, the commercial arm of the Dogecoin Foundation. Earlier this year, the partners launched a DOGE exchange traded product (ETP) on Switzerland’s SIX Swiss Exchange while simultaneously filing for a Dogecoin ETF in the U.S. House of Doge CEO Marco Margiotta stated: “This new ETF reflects the strength and momentum of a growing community of investors that continue to shape the future of crypto.”
The product launch follows last month’s acquisition of 21Shares by crypto prime brokerage FalconX in an undisclosed deal that will combine FalconX’s trading and brokerage infrastructure with 21Shares’ ETP platform across the U.S. and Europe. Despite the acquisition, 21Shares continues to operate independently while expanding its product offerings, which already include exchange traded products for Ethereum, Solana, and Bitcoin.
Michael Friedman of 21Shares indicated this is just the beginning of the firm’s leveraged product strategy, noting: “We look forward to launching other levered products for assets we believe have similar characteristics.” This suggests further leveraged crypto ETFs may be in development as institutional providers continue responding to evolving market demand for sophisticated digital asset investment vehicles.
📎 Related coverage from: decrypt.co