Dogecoin ETF Sees Strong Debut, But Rex-Osprey Is Already Plotting a Riskier DOJE Fund

Rex-Esprey’s Doje, the first American Spot Dogecoin ETF, Strong trade volumes produced When it came on the market on Thursday and so far landed this year in the top five of ETF outrolls. And the issue has already submitted a risky, lever game.

In one submission registered with the SEC On Thursday, Rex-Esprey applied to launch the Rex Doje Growth & Income ETF, an exchange product that wants to offer between 105-150% exposure to the price return of Doje on one day.

“Because the Fund is looking for daily lever results in leverage, it is very different from most other funds traded through the stock market,” is the archiving. “As a result, the fund can be riskier than alternatives that do not use leverage.”

The Rex doje Growth & Income ETF portfolio will consist of three separate components: livered Long exposure in the underlying Dogecoin ETF (DOje), a covered call strategy to generate income and investments in short-term treasuries or money market funds.

The primary goal is to pay weekly distributions, with a secondary objective to earn daily investment results between 1-1.5x the percentage change of doje.

The investment application for leverage is not new for Rex-Esprey, which offers a variety of livered ETF theater pieces that offers greater exposure, but more risk for investors.

The newest prospectus announces that this extra risk is not for everyone.

“The fund is not suitable for all investors,” it says. “The fund is designed to be used only by expert investors who understand the potential consequences of the search for targeted daily leverage investment results, understand the risks related to the use of leverage and are willing to follow their portfolios often.”

Due to the daily livered makeup, the company also notes that the fund will lose after a single day if the return is flat, and it is also possible that the ETF will lose of growth and income, even if the Doje ETF increases more than a day.

Moreover, the prospectus indicates that there is no guarantee that the strategy will be implemented correctly or that the weekly distributions can pay.

Dogecoin (Doge) has fallen by 6% to $ 0.265 in the last 24 hours. The leading meme-mint has risen by more than 22% in the past month, but remains a 64% discount on its 2021 of all times of $ 0.73.

The Standaje ETF of Rex-Esprey started acting on Thursday and generated around $ 17 million in trade volume, which put it in the top five for the first day volume under ETF launches this year, according to Bloomberg Senior ETF analyst Eric Balchunas.

The Rex-Esprey XRP ETF was now also launched on Thursday and saw much stronger demand, at the top of the list of new funding of this year with almost $ 38 million in trade volume.