Bitwise Moves to Advance Spot Dogecoin ETF Approval Process

Bitwise Files for Spot Dogecoin ETF, Signaling Major Step for Crypto Investment

Bitwise is actively working to launch the first Spot Dogecoin ETF in the United States, a move that highlights the increasing institutional appetite for the popular memecoin. The firm has submitted an 8(a) form, initiating an automatic effectiveness application. This process begins a 20-day countdown during which the U.S. Securities and Exchange Commission (SEC) can intervene.

This filing follows Bitwise's earlier S-1 registration and the establishment of a Delaware entity designed to support the fund. This development represents a significant stride toward introducing a Dogecoin-backed investment product into the regulated U.S. markets.

In September, Grayscale also submitted revised paperwork for its Dogecoin ETF proposal, initiating a similar countdown window. This competitive landscape sees multiple asset managers vying to introduce the first Spot Dogecoin ETF, reflecting a growing institutional awareness of Dogecoin’s liquidity and market presence.

The recent filing aligns with statements made by Bitwise Chief Investment Officer Matt Hougan in January. Speaking to the Financial Times, Hougan noted that Dogecoin is already among the largest crypto assets, boasting strong daily trading volume and sustained investor interest, which continues to grow with broader adoption discussions.

Expanding Institutional Access to Cryptocurrencies

The burgeoning interest in Dogecoin ETFs is part of a larger trend of crypto ETFs gaining mainstream financial acceptance. Beyond Bitwise and Grayscale, Osprey Funds and Rex Shares have also put forth their own ETF proposals.

Discussions surrounding evolving regulations are also influencing investor perspectives on the market. The U.S. government is actively developing new rules for better oversight of digital assets. Concurrently, the appointment of regulators perceived as more amenable to crypto, such as Paul Atkins as SEC Chair, is contributing to a more favorable environment for ETF approvals.

Hougan further argued that companies holding digital assets on their balance sheets require more sophisticated strategies. He stated, "If DATs limit themselves to that strategy, users are better off investing through exchange-traded funds." He also pointed out that ETFs now incorporate staking capabilities. Bitwise recently introduced a product that allows users to lock coins to earn rewards. Consequently, institutions might find it more advantageous to utilize ETF-based tools rather than developing their own internal custody and staking systems.

Dogecoin Market Outlook Shows Signs of Recovery

Dogecoin's short-term price action is exhibiting early indications of a recovery. The 4-hour chart reveals a downward channel, but the price has rebounded near the lower boundary, suggesting that buyers are attempting to shift the market sentiment. However, Dogecoin continues to trade below the Ichimoku Cloud, an indicator used to assess a market's trend and momentum. Prices above the cloud typically signal an uptrend, below the cloud indicate a downtrend, and trading within the cloud suggests uncertainty.

The cloud is currently situated around the $0.169 to $0.174 range, establishing a key resistance zone. A sustained move above this level could potentially shift market sentiment towards bullish control.

Currently, Dogecoin is trading at approximately $0.165. The Relative Strength Index (RSI) is hovering around 46, indicating that the market is not experiencing strong buying or selling pressure at this moment. The RSI is an indicator that helps traders determine if a cryptocurrency has been overbought or oversold within a short timeframe.

If the price manages to remain above $0.162, it could support a potential recovery. Conversely, breaking past the $0.17 mark might instill greater confidence in buyers and drive prices higher.

Analyst Javon Marks, active on X, has presented a more optimistic long-term outlook. He stated, "The TARGET for this setup REMAINS $0.6533," projecting a potential increase of over 300%. His analysis suggests that Dogecoin has completed a prolonged downtrend and is now establishing higher lows. Marks also outlined a secondary target near $1.23, contingent on accelerated momentum.

The progress toward a Dogecoin ETF could enhance accessibility for both retail and institutional investors, potentially boosting trading activity and influencing its future price trajectory.