One of the notable developments in the crypto market was Bitwise Asset Management’s application for a spot ETF for Dogecoin. Bitwise filed its 19b-4 application through NYSE Arca, a subsidiary of the New York Stock Exchange (NYSE). If approved, the Dogecoin ETF will be one of the first memecoin ETFs listed in the US.
How Will the Dogecoin ETF Work?
This ETF will offer investors the opportunity to invest in Dogecoin without directly owning it. The fund, which will be managed through a trust structure, will be managed by Bitwise. Coinbase will act as the fund’s Dogecoin custodian, while Bank of New York Mellon (BNY Mellon) will handle cash management and record keeping.
One of the most important features of the ETF will be that it will directly track Dogecoin’s price movements and directly store Dogecoin without using derivatives. The net asset value (NAV) will be calculated based on the CF Dogecoin-Dollar Settlement Price, so the value of the fund will move in line with the market price.
SEC Decision and Competitors
Bitwise is not the only company to apply for a Dogecoin ETF. Grayscale, Rex Shares, and Osprey Funds have also filed similar applications, intensifying the ETF competition in the memecoin market. Grayscale’s application, in particular, is at a more advanced stage in the regulatory process. The SEC officially evaluated Grayscale’s Dogecoin ETF application on February 13.
The probability of the Dogecoin ETF application being approved in the markets is increasing. According to the data, the probability of the ETF being approved in 2025 has increased to 67%. This rate was at 55% the day before, indicating that investors’ expectations are increasing.
Bitwise’s Dogecoin ETF application shows that memecoins are increasingly gaining ground in the traditional financial world. The approval process and the decision of the SEC should be followed closely.
Author: Besim Şen
