Cryptocurrency asset manager Grayscale Investments has launched the Dogecoin Trust, offering investors exposure to the leading memecoin, Dogecoin (DOGE).

"Grayscale believes DOGE has transitioned from a memecoin of a Shiba Inu to a tool for global financial inclusion, grassroots activism, and a viable means of payment," the company wrote in an announcement on Jan. 31. "Due to its widespread accessibility, affordability, and rapid transaction speeds, DOGE has garnered significant adoption worldwide."

At the time of writing, Dogecoin is down 3.1% in the past 24 hours, trading at $0.3255. The memecoin's 24-hour trading volume stands at $8.7 billion, maintaining its position as the eighth largest cryptocurrency with a market capitalization exceeding $50 billion.

However, Bloomberg ETF analyst Eric Balchunas clarified that Grayscale’s newly launched Dogecoin Trust is not an ETF and comes with a 2.5% management fee.

A trust like Grayscale's Dogecoin Trust is a private investment vehicle that allows accredited investors to gain exposure to an asset without directly holding it. Unlike an exchange-traded fund (ETF), which is publicly traded on stock exchanges with real-time liquidity, a trust's shares are not easily redeemable and are often traded at premiums or discounts to the underlying asset.

ETFs provide lower fees, better liquidity, and regulatory oversight, while trusts typically cater to institutional investors with higher fees and limited flexibility.

DOGE remains the largest memecoin, with support from high-profile figures like Tesla CEO Elon Musk.

DOGE gains political recognition

Grayscale's Dogecoin Trust launch comes amid hype around Musk’s Department of Government Efficiency (DOGE), which features the Dogecoin logo as its official emblem.

The White House unit, reportedly backed by President Donald Trump, has explored potential on-chain applications for federal government operations, including tracking spending, managing infrastructure, and facilitating payments.