Bitwise Files for Dogecoin ETF

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  • Bitwise Asset Management has filed an S-1 document with the US Securities and Exchange Commission to launch a Dogecoin exchange-traded fund
  • The proposed ETF aims to hold physical Dogecoin rather than derivatives, providing direct exposure to the cryptocurrency
  • This filing reflects the evolving regulatory environment under the new SEC leadership, which appears more receptive to cryptocurrency-based financial products

Bitwise Asset Management has recently submitted an S-1 filing to the US Securities and Exchange Commission (SEC), seeking approval to introduce a Dogecoin ETF. Unlike previous proposals, this ETF plans to hold actual DOGE, offering investors direct exposure to the digital asset. This move aligns with the current regulatory climate, which has become more accommodating toward cryptocurrency initiatives under the new SEC administration.

Bitwise Takes Advantage of “Major Shift” in Regulatory Climate

Bitwise filed its S-1 document with the SEC on Tuesday, coming shortly after it registered a Dogecoin ETF trust in Delaware, signaling the company’s commitment to expanding its cryptocurrency offerings. The proposed Bitwise Dogecoin ETF is designed to hold physical DOGE, distinguishing it from other ETFs that rely on derivatives. According to the filing, the fund will “hold Dogecoin rather than derivatives and will rely on the CF Benchmarks Index to track the cryptocurrency’s price.”

This initiative reflects the broader shift in the regulatory landscape, with such an eventuality unthinkable just a few short months ago; under the new SEC leadership, there appears to be a more favorable stance toward cryptocurrency-based financial products. Matt Hougan, Bitwise’s Chief Investment Officer, noted the “major shift in the regulatory climate in the US and the attitude to crypto with the new administration coming in.” 

Not the First Dogecoin ETF Application

Bitwise is not alone in its desire to create a Dogecoin ETF, although it is the largest firm to do so. Others, such as Rex Financial and Osprey Funds, have also filed with the SEC to launch memecoin-based ETFs, including those tied to Dogecoin. These developments indicate a growing interest in bringing cryptocurrency investments into mainstream financial markets. 

However, the introduction of memecoin ETFs has sparked concerns among industry experts. Bryan Armour, Director of Passive Strategies Research at Morningstar, expressed skepticism, stating, “We are moving away from the purpose of capital markets. This type of speculative instrument might make more sense in a casino than in a stock market.” 

As the SEC reviews these novel filings, the financial industry awaits its decisions, knowing that a positive outcome will significantly impact the nature of markets and those who invest in them.

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