2025-01-29
On January 28, 2024, crypto asset
manager Bitwise has officially filed with the U.S. Securities and Exchange
Commission (SEC) to launch a spot Dogecoin exchange-traded fund (ETF).
The filing marks the latest attempt by
investment firms to bring memecoin-based ETFs to the market.
The filing, an S-1 document submitted
on January 28, outlines Bitwise’s intent to establish a fund that would hold
Dogecoin (DOGE) and closely track the popular cryptocurrency’s price movements.
The company’s application follows
similar filings from investment managers Rex Shares and Osprey Funds, who have
also sought SEC approval for memecoin ETFs, including those tied to Dogecoin.
However, Bitwise’s filing stands apart
due to the regulatory framework under which it was submitted.
Unlike Rex and Osprey, who filed under
the Investment Company Act of 1940 (40 Act), Bitwise opted for the Securities
Act of 1933 (33 Act).
The difference is, as the
40 Act imposes stricter investor protection measures, including limitations on
leverage, short-selling, and governance requirements.
Bitwise’s move comes amid a surge of
interest in memecoin-based investment products.
Bloomberg ETF analyst James Seyffart
noted that Bitwise had previously registered a Dogecoin trust in Delaware on
January 22, signaling its long-term interest in the asset.
The broader market has seen an
increasing number of crypto-based ETF proposals, with fund issuers such as
Osprey Funds, Rex Shares, and Tuttle Capital submitting applications for
products tracking various digital assets, including Dogecoin and even a memecoin
linked to former President Donald Trump.
Seyffart suggested that these filings
are pushing the boundaries of what the current SEC, under new leadership, may
allow.
This follows a historically strict
stance on cryptocurrency ETFs, particularly under the previous SEC
administration, which was hesitant to approve spot crypto ETFs.
Although the S-1 filing represents a
crucial step in the ETF approval process, Bitwise must also submit a 19b-4
filing.
This document would initiate a
regulatory review period, during which the SEC would determine whether to
approve or deny the ETF’s listing on a public exchange.
Bitwise has not yet disclosed key
details such as the ETF’s proposed fee structure, ticker symbol, or the
specific stock exchange where it plans to list the fund.
However, the firm has named Coinbase
Custody as the intended custodian for the Dogecoin ETF, aligning with other
crypto ETF issuers who have chosen the digital asset platform for custody
services.
Dogecoin, originally created as a joke
in 2013, has since gained mainstream popularity and amassed a market
capitalization of $47 billion.
It remains the eighth-largest
cryptocurrency by market cap, fueled by endorsements from high-profile figures
and community-driven enthusiasm.
The filing of memecoin ETFs, once
considered an unlikely development, now appears more feasible under a more
crypto-friendly regulatory environment.
