Bitwise Assembles Files To Apply The Spot Dogecoin ETF With The US SEC
Bitwise has filed for an S-1 registration with the U.S. SEC for a spot Dogecoin exchange traded fund (ETF). This application is different from Rex Shares and Osprey Funds, which were DOGE ETF applications under the section 34 (33) Act. This is the first DOGE ETF application and it shows a different approach in regulatory policy.
If granted, the ETF would allow investors to buy directly Dogecoins. According to Coinroop, The current price of Dogecoin is $0.32. Bitwise made the filing with federal regulators on Tuesday after its registration showed a January 22 incorporation date in Delaware. In a tweet, Bloomberg ETF analyst James Seyffart stated that this move was widely expected adding that this action formalizes it with the sec.
Bitwise is seeking to expand more into crypto ETFs
Bitwise, which already manages the 4.5 Billion Dollar Bitcoin ETF, is looking to increase their customer base, owing to an increasing popularity of memecoin ETFs. CIO Matt Hougan noted that interest on Dogecoin was high in his words: “There are many investors who want exposure to Dogecoin.”
It is ranked sixth largest in terms of market cap is trades over $1 billion every day.”
How Bitwise’s Filing Differs from Others
Previously investment firms such as Osprey Funds and Rex Shares applied to the SEC to launch a few crypto ETFs including one for Dogecoin assets. As per Balchunas who is a senior ETF analyst at Bloomberg, Bitwise uses different tactics when compared to Rex Shares.
“This is the first 33 Act Doge filing” Balchunas wrote on X. “Rex filed under the 40 Act, but that’s a different structure.”
The 33 Act provides guidelines for ETF backed by commodities while the 40 Act has more strict guidelines set by the SEC for the fund, which is why they have increas ed investor protection. Bitwise filed specifically to create a physically backed DOGE ETF.
Bitwise Eyes More Crypto ETFs
Besides that, the firm is waiting for the SEC to make decisions on other crypto ETF applications such as the one they proposed for XRP. Monica Long, President of Ripple is of the opinion that the current US Government being pro crypto should help push the approval rate higher.
On the other hand, Dogecoin has established a downtrend and is forming a descending triangle in the daily chart. As per CoinMarketCap, the trading volume decreased by 51.7% for the last 24 hours.
