29.01.2025 11:24
Bitwise has applied to the SEC for a Dogecoin (DOGE)-focused ETF. If this ETF application, supported by Elon Musk, the owner of the X platform, is accepted, it is expected to take off.
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A new era is beginning in the world of cryptocurrency. Bitwise has applied to the U.S. Securities and Exchange Commission (SEC) to establish a Dogecoin-focused exchange-traded fund (ETF). This development is significant in terms of demonstrating how Dogecoin and other memecoins will find their place in financial markets. Bitwise's move highlights the potential for cryptocurrencies to gain broader acceptance as investment vehicles.
Dogecoin ETFs on the Way
Investment giant Bitwise has taken action for an ETF based on the DOGE cryptocurrency. The company has made a significant step in the memecoin market by submitting its application to the regulatory body, the SEC.
The S-1 form submitted to the U.S. Securities and Exchange Commission on Tuesday serves as the official document of Bitwise's plan to create a DOGE-based exchange-traded fund. This initiative coincides with applications from companies like Rex Shares and Osprey Funds, which have made similar moves in the sector.
According to ETF expert Eric Balchunas, Bitwise's application is based on a different legal framework than others. The company's application under the '33 Act differs from Rex and Osprey's initiatives under the '40 Act. The '33 Act is generally used for private product and commodity-focused ETFs, while the '40 Act includes more comprehensive regulations aimed at protecting investors and imposes restrictions on leverage and short selling.
Bitwise, which already has various crypto ETFs and is also working on an XRP-based ETF, needs to complete the 19b-4 form in accordance with the timeline set by the SEC to bring this new initiative to life.
Memecoin ETFs, which seemed almost impossible during the tenure of former SEC Chairman Gary Gensler, have gained a new dimension with former President Donald Trump's positive approach to cryptocurrencies. The existence of memecoins named after Trump, TRUMP and MELANIA, indicates a high level of interest in this area. These developments strengthen the likelihood of memecoin ETFs receiving approval in the upcoming period.
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