- Bitwise’s Dogecoin ETF is moving closer to approval after NYSE Arca filed a 19b-4 proposal, allowing investors to gain direct exposure to Dogecoin without holding it themselves.
- With Coinbase as the custodian and BNY Mellon managing cash custody, the ETF’s approval could legitimize Dogecoin as an investable asset while paving the way for more crypto ETFs.
Bitwise Asset Management has taken a significant step toward launching its Dogecoin exchange-traded fund (ETF), with NYSE Arca filing a 19b-4 proposal to list and trade its shares. This development brings Dogecoin one step closer to mainstream investment accessibility, potentially opening doors for broader institutional and retail adoption.
A New Way to Invest in Dogecoin
The proposed ETF will allow investors to gain direct exposure to Dogecoin without the need to hold or manage the cryptocurrency themselves. Unlike derivative-based funds, this ETF will directly hold Dogecoin, ensuring that its value closely mirrors that of the popular memecoin. The ETF is structured as a Delaware statutory trust, with Bitwise acting as its sponsor and managing the fund under a trust agreement.
How the ETF Works
The fund aims to track the value of Dogecoin while covering operational costs. Its net asset value (NAV) will be determined by a pricing benchmark from CF Benchmarks Ltd. To maintain transparency and efficiency, the ETF will not accept direct contributions or withdrawals of Dogecoin. Instead, it will operate using cash creations and redemptions, making it easier for traditional investors to participate.
Bitwise has designated Coinbase as the fund’s Dogecoin custodian, ensuring secure storage of the digital assets. Meanwhile, the Bank of New York Mellon will handle cash custody, administration, and transfer agency functions.
One unique aspect of the Bitwise Dogecoin ETF is that any fees, including Bitwise’s management fee, will be paid in Dogecoin. Additionally, the fund’s structure explicitly disclaims any unintended receipt of other digital assets, such as those received from blockchain forks or airdrops.
Growing Interest in Dogecoin ETFs
Bitwise is not the only firm eyeing a Dogecoin ETF. Other asset managers, including Rex Shares, Osprey Funds, and Grayscale, have also submitted filings for similar products. Grayscale’s application was acknowledged by the SEC on February 13, signaling increased regulatory interest in memecoin-based investment vehicles.
Bitwise initially filed for its Dogecoin ETF registration in late January, following up with an S-1 registration on January 28. The SEC’s approval process will determine whether Dogecoin joins the ranks of other cryptocurrencies with dedicated ETFs, such as Bitcoin and Ethereum. If successful, this could mark a turning point for Dogecoin, reinforcing its legitimacy as an investable asset.
With the SEC also reviewing applications for other crypto ETFs, including an Aptos ETF from Bitwise, the market’s growing demand for diversified crypto investment products is becoming increasingly evident. Investors and Dogecoin enthusiasts will be closely watching the regulatory process, as the outcome could shape the future of crypto ETFs in the U.S.
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