In Brief
- •Bitwise has submitted a modified Dogecoin ETF application to the SEC.
- •The ETF could launch within twenty days if the SEC does not object.
- •Dogecoin's price increased by 13% in the 24 hours following the announcement.
Bitwise Advances with Dogecoin ETF Application
Bitwise, a prominent crypto asset manager, has withdrawn its delaying amendment with the SEC, paving the way for a swift listing of the Bitwise Dogecoin ETF. If the federal agency raises no objection within the next twenty days, the fund will automatically become active, marking the debut of the first Dogecoin ETF managed by a major institutional player.
This is not the first opportunity for American investors to gain exposure to DOGE. In September, Rex Shares and Osprey Funds introduced the DOJE ETF, which saw over $17 million in trading volume on its launch day.
However, Bitwise's involvement signifies a potential shift in the landscape. The firm, recognized for its diligent approach and educational focus on the crypto market, could elevate Dogecoin into a mainstream investment product.
Financial advisor Ric Edelman supports this move, stating, "Bitwise is acting rightly: investors should have access to a diversified range of digital assets." He anticipates that altcoin ETFs will follow the success trajectory of Bitcoin ETFs, which currently hold over $150 billion in assets.
An Institutional Turning Point for DOGE
Initially created in 2013 as a parody of Bitcoin, Dogecoin has evolved into a significant symbol of Internet culture. What began as a developer joke has, over time, transformed into a popular icon within the crypto economy, bolstered by its distinctive humor, a dedicated community, and the notable support of Elon Musk.
Dogecoin is now recognized as a substantial digital asset, ranking among the top ten largest cryptocurrencies globally with a market capitalization of $25.4 billion.
Following the announcement of Bitwise's ETF filing, Dogecoin's price saw a 13% increase, reaching $0.18. While this is still below its all-time high of $0.73 in 2021, it signifies a resurgence in speculative interest for the popular "meme coin."
This development aligns with a broader trend: the significant growth of crypto ETFs. Bloomberg reports that over 90 approval requests have been submitted to the SEC by asset managers from both traditional finance and the cryptocurrency sectors.
This surge is attributed to the relaxation of admission criteria for funds backed by digital commodities and the substantial success of Bitcoin and Ethereum ETFs, which currently manage $150 billion and $20 billion in assets, respectively.
The anticipated launch of the Bitwise Dogecoin ETF further blurs the lines between traditional finance and Internet culture. This product has the potential to transform a meme into an institutional asset, underscoring the significant value that even internet phenomena can achieve in the crypto space.