Bitwise Seeks Approval for a New Dogecoin ETF 🚀
Bitwise has formally submitted its S-1 registration statement to the United States Securities and Exchange Commission (SEC) to introduce a spot Dogecoin ETF. This motion follows similar proposals made by other investment firms such as Rex Shares and Osprey Funds earlier in this year.
Overview of Bitwise’s Dogecoin ETF Application 🐕
Bitwise, a leader in cryptocurrency index fund management, has taken a significant step by filing for its Dogecoin spot ETF with the SEC.
This latest filing adds to the previous submissions made by Rex Shares and Osprey Funds, which featured multiple applications for crypto ETFs, including one for Dogecoin.
Eric Balchunas, an expert on ETFs at Bloomberg, pointed out key distinctions between these applications. The SEC filing from Bitwise for the Dogecoin ETF falls under the 33 Act, while the applications from Rex Shares and Osprey are filed under the 40 Act, which imposes more rigorous compliance requirements.
“The Bitwise Dogecoin ETF has been officially filed. This marks the inaugural Dogecoin application under the 33 Act, similar to $IBIT. Meanwhile, Rex’s application was submitted under the stricter 40 Act, which entails a different structure,” noted Balchunas.
Typically, S-1 filings guided by the 33 Act are utilized for niche ETFs often centered around commodities. In contrast, filings adhering to the 40 Act offer increased investor protections due to more stringent SEC regulations.
The regulatory framework of the 40 Act restricts leverage and short-selling strategies, and it necessitates fiduciary oversight alongside enhanced governance measures.
Bitwise’s History with Crypto ETFs 📈
Bitwise is no stranger to cryptocurrency ETFs. The recent application for a Dogecoin ETF builds upon their prior submission made on September 30, which sought to launch a Ripple (XRP) spot ETF.
Furthermore, Bitwise holds the distinction of being one of the initial eleven issuers to introduce spot Bitcoin ETFs in the United States. They received official approval on January 11, 2024, with their Bitcoin ETF being listed on the NYSE under the ticker symbol BITB.
Additionally, Bitwise launched an Ethereum spot ETF in the latter half of July 2024, also listed on the NYSE, with the ticker ETHW.
This current application for a Dogecoin ETF targets the famed memecoin, which draws a strong following, notably from high-profile figures like Elon Musk.
Current Status of Dogecoin’s Market Price 💹
As it stands, DOGE is not witnessing notable price fluctuations. The eighth-largest cryptocurrency by market cap appears to be struggling to regain momentum.
At the time of this writing, DOGE is priced at $0.33, reflecting a downturn of approximately -10% compared to its value a week earlier.
Interestingly, a recent event involving DOGE and Elon Musk was the unveiling of the D.O.G.E website (Department of Government Efficiency), which initially featured the logo of the popular memecoin before it was removed shortly after.
This initial display may have triggered a brief surge in DOGE’s price, often referred to in trading circles as a “pump and dump.” The most recent high for DOGE occurred in December, when it peaked at $0.47.
As interest in crypto assets continues to evolve, keep an eye on the developments surrounding the Dogecoin ETF proposal and the larger landscape of cryptocurrency investments.
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