On January 31, Grayscale Investments announced the launch of an investment fund focused on Dogecoin. The asset manager aims to capitalize on the growing interest in cryptocurrency alternatives to Bitcoin.
The newly introduced Grayscale Dogecoin Trust will allow investors to access a token that the company views as shifting "from a memecoin... to a tool for global financial inclusion and a viable means of payment."
As investors seek opportunities outside of Bitcoin, companies like Grayscale are leveraging the rising popularity of altcoins—crypto tokens other than the largest cryptocurrency in the world.
Rayhaneh Sharif-Askary, Grayscale's head of product and research, stated, "Dogecoin is helping groups underserved by legacy financial infrastructure to participate in the financial system."
Established in 2013 and headquartered in Stamford, Connecticut, Grayscale provides exposure to cryptocurrencies through over 25 investment products.
The Grayscale Dogecoin Trust, which is structured to mirror Dogecoin's market value, is now open for subscriptions to eligible individual and institutional accredited investors.
Although initially created as a joke during a previous crypto boom, Dogecoin has steadily gained popularity, partly due to the endorsement of Elon Musk, CEO of Tesla and the world's wealthiest individual.
Currently ranked as the eighth-largest cryptocurrency globally, Dogecoin boasts a market capitalization of approximately $50 billion, as reported by cryptocurrency data and analysis firm CoinGecko.
Furthermore, the (DOGE) - a group advised by Musk under the Trump administration for executing reductions in the U.S. government - also mentions Dogecoin.