Bitwise Moves Toward Launching First Dogecoin ETF
By: Eliza Bennet
Bitwise Asset Management is making headlines with its recent registration for a Delaware statutory trust, hinting at plans to introduce a Dogecoin-focused exchange-traded fund (ETF). This move aligns with the growing trend of crypto firms maneuvering to launch financial products centered around popular cryptocurrencies like Dogecoin, which started as a meme but has become a significant digital asset with a market capitalization exceeding $50 billion.
On January 22, Bitwise took a significant step by filing this registration, a common preliminary move in the ETF application process. While the firm has not released an official statement on this filing, industry analysts view it as an early attempt to bring a Dogecoin ETF to market. Notable figures like Eric Balchunas and James Seyffart from Bloomberg have expressed optimism regarding Bitwise's endeavors, suggesting potential future applications to the US Securities and Exchange Commission (SEC).
Amid this filing, Dogecoin's value experienced a temporary decline, with a 5% drop over 24 hours, leading to substantial trader losses. The volatile nature of DOGE and other memecoins remains a point of concern among critics who question their viability and risk level for institutional investors. However, the odds may be favorable; metrics from Polymarket indicate a 48% possibility of a Dogecoin ETF securing SEC approval this year.
Bitwise's initiative comes during a period of burgeoning interest in crypto-related ETFs. According to Bloomberg data, the SEC is currently reviewing 33 different crypto ETF applications, and this number is expected to rise. Despite the influx of applications, spot Bitcoin ETFs are anticipated to maintain supremacy, having drawn significant investor interest since their inception. Nonetheless, Bitwise's potential Dogecoin ETF might pave the way for diversified crypto investment products, reflecting the maturing landscape of the market as regulatory developments continue to influence the industry.
