Canary Capital Snubs Dogecoin ETF, Here’s Why

The cryptocurrency market might have a new spot product in the Dogecoin (DOGE) exchange-traded fund (ETF). This is because several asset managers in the U.S. appear set to launch it, as there are predictions that both DOGE ETF and Solana ETF could trigger the growth of RCO Finance.

However, Canary Capital says it is not interested in joining the bandwagon.

Dogecoin’s Lack of Utility and Unlimited Supply Raise Concerns

According to a report, Steven McClurg, Canary Capital CEO, says the investment firm is interested in launching a spot DOGE ETF. The lack of interest in an ETF product for the dog-themed memecoin follows consideration of certain factors.

Notably, McClurg emphasized the lack of utility for Dogecoin in the broader cryptocurrency space. Besides utility, he also highlighted the memecoin’s unlimited supply. These two factors are enough to discourage Canary Capital from considering launching an ETF.

 McClurg argued that DOGE, by design, will continue to depreciate as its supply increases. As such, he does not consider it fit for an ETF product as the supply remains unlimited.

Canary Capital Eyes XRP, Solana, and Other Crypto ETFs

Interestingly, Canary Capital is among several investment firms competing for other products. Notable among their interests include XRP and Solana.

Since President Donald Trump returned to the White House, crypto industry stakeholders have looked forward to favorable regulation. Given its crypto-friendly disposition, many have rushed to file crypto ETF products. As such, Canary Capital has filed to launch ETF products for Solana, Litecoin, HBAR, and XRP.

Unlike DOGE, Solana (SOL) has utility as it serves to pay for transactions on the Solana network. Recently, SOL was used for trading the popular official Trump memecoin. This not only boosted the value of the price of SOL but also increased activity on Solana.

Asset Managers Bet on Dogecoin’s Loyal Community

However, experts say what Dogecoin lacks in utility, it makes up for in its loyal fan base. A notable fan of the memecoin is Elon Musk, Tesla’s founder. The entrepreneur has consistently supported the memecoin with occasional posts on X. Musk’s posts usually trigger bullish sentiments in the ecosystem.

Dogecoin’s loyal fan base and recent developments in the U.S. space might have prompted some asset managers to apply for an ETF to track DOGE. Notably, Grayscale has launched a Dogecoin Trust after it filed with regulatory authority to convert the fund into a spot ETF.