According to reports, Bitwise has filed an S-1 with the SEC to launch a Dogecoin ETF, aiming to offer direct exposure to DOGE.
Bitwise Seeks Regulatory Approval for DOGE ETF
Crypto asset manager Bitwise has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to launch a Dogecoin (DOGE) exchange-traded fund (ETF). The filing, an S-1 document dated January 28, signals Bitwise’s intent to offer a product that directly holds DOGE and tracks its price movements. Bloomberg ETF analyst James Seyffart first reported the development.
Filing Details and Custodial Arrangements
For the approval process to move forward, Bitwise must also submit a 19b-4 filing, which is necessary for the SEC’s review. The proposed ETF lists Coinbase Custody as the custodian, a common choice among crypto ETF issuers. However, Bitwise has not disclosed details such as the fund’s ticker symbol, fee structure, or the stock exchange where it would be listed if approved.
Growing Trend of Memecoin ETF Applications
Bitwise’s move follows a prior registration in Delaware, reinforcing its commitment to bringing a Dogecoin ETF to market. This filing comes amid a growing number of memecoin ETF applications in the U.S., with firms such as Osprey Funds, REX Shares, and Tuttle Capital proposing funds tied to various meme tokens, including DOGE and Official Trump (TRUMP).
Differences in Filing Approach
Unlike some other memecoin ETF filings, which were made under the Investment Company Act of 1940 (40 Act), Bitwise’s filing falls under the Securities Act of 1933 (33 Act). According to Bloomberg Intelligence senior ETF analyst Eric Balchunas, this distinction is significant. The 40 Act imposes stricter investor protections, including limitations on leverage and short-selling, while the 33 Act is typically used for commodity-based ETFs.
Market Reaction
Dogecoin, initially created as a joke, has evolved into a widely recognized digital asset with a market capitalization of $47 billion, making it the eighth-largest cryptocurrency. The coin has gained traction due to social media influence and endorsements from figures such as Elon Musk. Despite growing institutional interest, Dogecoin’s price dropped 4% following the news, indicating investor caution.
Regulatory Landscape
The regulatory landscape for memecoin ETFs remains uncertain, especially given the SEC’s past reluctance to approve crypto-based investment products. However, changing political dynamics, including former President Donald Trump’s pro-crypto stance, have led some to speculate that regulatory approval for memecoin ETFs could become more feasible.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.