NYSE Arca has formally applied to list the Bitwise Dogecoin ETF, aiming to bring the popular memecoin into the regulated investment space. The proposal, now awaiting SEC approval, seeks to offer investors direct exposure to Dogecoin through an exchange-traded fund.
The March 3 application requests approval for the ETF’s listing and trading on NYSE Arca. Approved under a green light, the fund would be among the first U.S.-listed memecoin ETFs, providing a controlled route for both institutional and retail investors to access Dogecoin.
Management and Custodiality
The proposed ETF will not directly handle Dogecoin since it will use a cash creation and redemption method. Rather, Coinbase will be the custodian of the bitcoin for the fund, guaranteeing compliance and security. Cash custody, administrative responsibilities, and transfer operations will fall to the Bank of New York Mellon in the meantime.
Bitwise has earlier committed to starting this ETF by submitting an S-1 registration statement to the SEC in January. The approval procedure is now determined by the SEC’s review and judgment.
Reactions of the Market and More General Trends
The price of Dogecoin has not responded well to the news even with the possible milestone. Rather, the memecoin has plunged more than 15% after the filing, in line with a larger slide in the bitcoin market.
Beyond Bitwise’s initiative, the crypto ETF market rivalry is intensifying. Nasdaq presented a similar request to list and trade shares in the Grayscale Hedera Trust on the same day the NYSE Arca application was made, therefore tracking the price of Hedera’s native token, HBAR. A flood of cryptocurrency ETF applications with ideas for ETFs linked to Cardano, Solana, Polkadot, Litecoin, and XRP also has surfaced.
The Evolution of Ethereum ETFs
As the SEC’s position on bitcoin ETFs changes, asset managers wishing to introduce fresh products are showing more interest. Should the Bitwise Dogecoin ETF be approved, more memecoin and altcoin-oriented ETFs could follow suit.
Investors and market players excitedly await the SEC’s ruling for now, which might affect more general patterns in crypto acceptance and integration into conventional financial markets.
