Bitwise Asset Management has taken a crucial step toward launching a Dogecoin exchange-traded fund (ETF), with NYSE Arca officially filing a 19b-4 proposal to list and trade its shares.
The filing, submitted on March 3, seeks regulatory approval to allow investors direct exposure to Dogecoin through a regulated investment vehicle.
Source: NYSE Filling
If the U.S. Securities and Exchange Commission (SEC) greenlights the proposal, it would mark a significant milestone in the evolution of crypto-based ETFs, particularly for meme coins.
The Bitwise Dogecoin ETF is structured as a Delaware statutory trust, with Bitwise as the sponsor.
Unlike derivatives-based funds, this ETF will hold Dogecoin directly, mirroring the asset’s market performance.
To maintain transparency and trust, CF Benchmarks Ltd. will provide pricing benchmarks, ensuring accurate net asset value (NAV) calculations.
Additionally, Coinbase has been designated as the fund’s custodian, while the Bank of New York Mellon will oversee cash custody and administration.
Rising Optimism for SEC Approval
Investor sentiment surrounding the approval of a Dogecoin ETF has been growing steadily, with prediction markets and analysts signaling increased confidence.
Polymarket, a decentralized prediction market, recently placed the likelihood of an SEC approval at 67%, while Bloomberg analysts have raised their odds to 75% by next year.
This optimism stems from recent shifts in regulatory attitudes. The SEC appears more receptive to crypto-based investment vehicles, particularly after spot Bitcoin ETF approvals.
However, despite these positive indicators, regulatory uncertainty remains. The SEC’s cautious approach to crypto ETFs and its historical reluctance to approve meme coin-related products mean a final decision is far from guaranteed.
Still, the momentum is undeniable. As the SEC’s review window extends over the next several months, the community will closely monitor how things unfold.
Meanwhile, Dogecoin’s market response has been mixed. Initially buoyed by ETF speculation, the asset saw a brief surge in value before experiencing a sharp decline.
Despite the growing enthusiasm surrounding a potential ETF approval, Dogecoin has largely struggled to maintain its price momentum.
Source: TradingView
Following the filing announcement, DOGE initially saw a brief uptick, yet broader market conditions have led to a 15% decline, pushing the price down to $0.19. The trading volume has also dropped by 16.8%.
Part of this decline can be attributed to external factors, including recent market-wide corrections and shifting investor sentiment following political developments.
Optimism surged after former President Donald Trump hinted at accumulating a crypto reserve, sparking bullish sentiment across several digital assets.
However, Dogecoin could not sustain its rally as the broader market retraced its gains.
More Altcoin ETF Filings on the Horizon
The push for crypto-based ETFs is not limited to Dogecoin. Other major altcoins, including Hedera (HBAR), Cardano (ADA), Solana (SOL), Polkadot (DOT), Litecoin (LTC), and XRP, are also under review for similar investment vehicles.
For instance, Nasdaq recently filed for a Polkadot ETF.
For Dogecoin, the competition among asset managers to secure ETF approval is heating up.
Alongside Bitwise, Grayscale and Osprey Funds have submitted applications for Dogecoin-related investment products.
The SEC acknowledged Grayscale’s filing on February 13, and a final decision on its Dogecoin Trust is expected by mid-October.
Looking ahead, the SEC’s stance on these products could set a precedent for future altcoin ETFs. While Bitcoin and Ethereum ETFs have already seen some regulatory acceptance, meme coins and other altcoins still struggle.
However, the increasing number of filings and the SEC’s ongoing review process indicate that institutions are racing towards approval.
The SEC is actively reviewing Bitwise’s Dogecoin ETF proposal, so the next few months will be crucial in determining the fate of meme coin investment products.
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