The U.S. Securities and Exchange Commission (SEC) is currently reviewing Bitwise’s Dogecoin ETF proposal amid growing optimism in the cryptocurrency market. The filing, submitted via Form 19b-4 by NYSE Arca, seeks authorization to list and trade the Dogecoin (DOGE) ETF, marking an additional step following Bitwise’s initial S-1 filing with the SEC.
According to the filing, Coinbase Custody will be responsible for managing the ETF’s Dogecoin assets, while the Bank of New York Mellon will oversee the financial assets and administrative operations. The proposal details that the ETF will have Dogecoin as its primary asset, with the Net Asset Value (NAV) calculated daily based on the CF Dogecoin-Dollar Settlement Price, an industry-recognized price indicator. This strategy aims to allow the ETF to accurately track Dogecoin’s market value, offering investors the chance to trade the popular meme cryptocurrency in traditional market environments.
Bitwise’s move is not unique, as other notable corporations, including Grayscale and Rex Shares, have also expressed interest in launching their own Dogecoin ETFs. Grayscale’s application has now advanced further in the SEC’s review process, increasing its chances of success in the competitive ETF market.
The market environment has been showing increasing optimism regarding the approval of a Dogecoin ETF. According to data from the Polymarket platform, the probability of the ETF’s approval has increased significantly, reaching 67%, a notable increase compared to 55% the previous day. Analysts at Bloomberg project up to a 75% chance of the ETF being approved by 2025, reflecting growing confidence that the regulation of a Dogecoin ETF could be carried out soon, although final approval is still pending.
Despite the increase in market confidence, Dogecoin’s price has recently faced a nearly 16% drop, with a corresponding 17% decrease in trading volume. This decline in price and volume highlights the broader challenges facing the market despite the optimism surrounding the new ETF.
Grayscale’s leadership in the ETF approval process indicates significant regulatory interest and reinforces market optimism despite the fluctuations in DOGE’s value. Dogecoin, which began as a joke in 2013, has managed to establish itself as the leading meme cryptocurrency with a market cap of over $28 billion, highlighting its potential to disrupt the traditional financial market.