Dogecoin (DOGE ($0.13)) endured a sharp 10% decline over the past 24 hours. Yet, in an unusual twist, investor sentiment remains buoyant thanks to the debut of the first Dogecoin-focused exchange-traded fund (ETF) on Wall Street.

The REX-Osprey Dogecoin ETF (ticker: $DOJE) began trading on Thursday and quickly attracted attention, with shares worth more than $50 million changing hands within minutes of launch. According to REX-Osprey’s website, assets under management have already reached $400 million, underscoring both retail and institutional demand for regulated exposure to DOGE.

The arrival of $DOJE marks a turning point for meme coins in traditional finance. Until now, Dogecoin and its peers—Shiba Inu, Pepe, and others—remained speculative instruments largely confined to crypto-native platforms. By creating a product that trades on established U.S. exchanges, regulators and fund issuers are opening doors for pension funds, hedge funds, and individual investors who would otherwise be unable—or unwilling—to directly hold the cryptocurrency.

This is no small development. ETFs act as a bridge between volatile digital assets and traditional capital markets. When Bitcoin and Ethereum ETFs were first launched, they triggered enormous inflows and altered liquidity dynamics across the sector. Analysts now suggest Dogecoin could follow a similar trajectory, especially given its cultural cachet and broad retail following.

Despite the historic ETF launch, the Dogecoin spot market has been anything but calm. Daily trading volume surged nearly 200% to $5 billion, representing 14% of DOGE’s circulating market capitalization. That kind of turnover reflects intense selling pressure, with many overleveraged traders forced out by cascading liquidations. Across the broader crypto market, liquidation tallies approached $2 billion in just one day.

Volatility, however, is not inherently negative. Analysts often point out that liquidation events “reset” the market, reducing leverage and clearing space for fresh buyers. For Dogecoin, the timing could prove fortuitous. The token is now approaching a crucial support level near $0.22, a zone many technical traders identify as a potential launchpad for a rebound. Should momentum reverse, a climb past $0.40 would confirm a bullish breakout and potentially set DOGE on a path toward the long-discussed $1 threshold.

Institutional players appear well aware of these dynamics. By green-lighting $DOJE, issuers are wagering that demand for DOGE exposure will remain strong even amid short-term volatility. In fact, Wall Street tends to prize liquidity events—moments when weaker hands exit and stronger capital flows in.

The ETF’s early success suggests that investors are less concerned with Dogecoin’s day-to-day swings and more interested in its role as a high-beta crypto asset capable of outsized returns. In this respect, Dogecoin resembles Bitcoin in its early ETF era: dismissed by skeptics but courted by traders who see the potential for asymmetric upside.

With $DOJE now live, Dogecoin may soon enter a new phase of price discovery. Traditional investors who had no easy on-ramp to DOGE can now buy shares through brokerage accounts, retirement funds, and institutional platforms. Every dollar that flows into $DOJE represents indirect buying pressure on the underlying asset, tightening supply-demand dynamics in a way familiar from Bitcoin’s ETF history.

If capital inflows continue, Dogecoin’s narrative could evolve from “meme coin” to “mainstream asset class experiment.” This does not mean DOGE will shed its roots in internet culture, but it does mean that financial professionals may need to treat it more seriously in portfolio allocation discussions.

The launch also comes at a time when new meme coins are competing for investor attention. Maxi Doge ($MAXI), currently in presale, positions itself as the next potential breakout. Whether it will follow in Dogecoin’s footsteps is uncertain, but the existence of an ETF for the original meme coin sets a precedent: regulated pathways may eventually extend to other assets in this category if demand persists.

Still, the risks remain significant. Meme coins are notorious for extreme volatility, rapid hype cycles, and speculative bubbles. For long-term investors, distinguishing between durable adoption and temporary mania will be key.