The SEC is currently reviewing Bitwise’s filing for a Dogecoin ETF. NYSE Arca submitted a 19b-4 form to seek approval for this exchange-traded fund. This follows Bitwise’s earlier S-1 submission. Coinbase Custody will manage the Dogecoin assets, while the Bank of New York Mellon will handle cash assets and administration.
The proposed ETF will primarily hold Dogecoin. Its Net Asset Value (NAV) will be calculated daily using the CF Dogecoin-Dollar Settlement Price. This method aims to help the ETF closely track Dogecoin’s market value. It offers investors a chance to trade Dogecoin in traditional markets.
Other firms, like Grayscale and Rex Shares, have also filed for a Dogecoin ETF. Grayscale’s application is further along in the SEC review process and has already been acknowledged by the SEC. This makes Grayscale a strong competitor in the ETF space.
Market sentiment around the approval of a Dogecoin ETF is becoming more positive. Polymarket reports that the probability of approval has increased to 67%, up from 55% the previous day.
Bloomberg analysts predict a 75% chance of approval by 2025. This growing confidence shows that the market believes a regulated Dogecoin ETF may soon be possible, although approval is not guaranteed.
This potential ETF represents a significant moment for Dogecoin. Initially created as a joke in 2013, Dogecoin has grown to become the largest meme cryptocurrency, with a market cap over $28 billion.
However, despite this optimism, DOGE’s price has recently dropped by nearly 16%. Trading volume has also decreased by 17%. This decline highlights the broader market challenges, even with the positive news about the ETF.
In summary, while optimism grows around the Dogecoin ETF approval, DOGE’s price volatility remains a concern.
