By Michael Scott
Bitwise joins Osprey Funds and Rex Shares with the official filing of S-1 registration. The asset management firm seeks approval from the US Securities and Exchange Commission (SEC) to issue a spot Dogecoin exchange-traded fund (ETF).
Key Highlights
- Bitwise revealed the S-1 filing on Tuesday, Jan. 29, as it pursues approval for spot DOGE ETF.
- Bitwise joins Osprey Funds and Rex Shares, which recently submitted Form N1-A and are seeking approval for multi-crypto ETFs, among them DOGE.
- Unlike Rex Shares and Osprey Fund, which filed S-1s under the 40 Act, Bitwise opted for less strict oversight under the 33 Act.
- The filing is fresh off the Delaware registration completed by Bitwise on Tuesday, Jan.22.
Approval of spot DOGE ETF will facilitate investors with regulated exposure to Dogecoin without the crypto wallets.
The race to unveil the initial Dogecoin ETF is heating up following the formal submission of its S-1 registration on Tuesday, Jan. 28. The filing is a critical development as more asset managers seek to onboard the meme-coin king to the traditional investment space.
Bitwise Files S-1 for DOGE ETF
The S-1 filling portrays the official declaration of Bitwise intent to issue a spot Dogecoin ETF. This builds upon the earlier foundation via a Delaware registration attained on Jan.22.
Bloomberg ETF analyst James Seyffart revealed the filing in an X post, hailing its essence in the formal SEC approval process. The pursuit for the spot DOGE ETF is hardly an isolated initiative for Bitwise. A few days earlier, Osprey Funds and Rex Shares submitted their registration for multi-crypto ETFs. The ambitious proposals extend Rex and Osprey’s focus beyond Dogecoin to feature Solana (SOL), Bitcoin (BTC), XRP, and Official Trump (TRUMP).
The regulatory approach adopted by the three firms has notable differences. Bitwise filed its S-1 under the Securities Act (1933), identified as the 33 Act. The provision typically governs speciality ETFs alongside commodity-based products.
Bloomberg’s analyst Eric Balchunas highlighted this distinction by indicating that each approach has different implications. Bitwise 33 Act path contrasts the filing by Rex and Osprey, who chose the Investment Company Act (1940). The 40 Act stipulates a rigorous SEC oversight with stricter governance. It places firmer restrictions on risky investment strategies, including leverage and short-selling.
The ultimate approval of Dogecoin ETF will bring several advantages to potential investors. The resulting structure will yield exposure to the DOGE’s price action within the regulated space. This pathway eliminates the need for crypto wallets and direct interactions with the exchanges. Like spot Bitcoin ETFs, the approval of DOGE ETFs would bolster accessibility accessibility capable of attracting traditional investors often hesitant with the crypto platforms.
The ETF format yields additional benefits, particularly with bolstered liquidity for the participating traders and cost efficiency within the managing positions. Moreover, the regulated attribute of ETFs brings greater pricing and trading volumes relative to direct crypto investments.
Challenges in Approval Path
The path to secure DOGE ETF approval is riddled with several hurdles. Most meme coins, such as Dogecoin and Shiba Inu (SHIB), are vulnerable to price volatility and absence in their fundamental value.
Legal veteran Max Buwick from the Burwick Law raised concerns over the profiling of meme coins as problematic investments likely to exploit and erode investor enthusiasm.
The filing timing emerges when the crypto investment landscape evolves, aided by broader changes. CryptoQuant chief executive hails President Trump’s influence as being behind the new era for the meme coins, including Melania and Official Trump, despite opinions that challenge their merit.
Is DOGE ETF Welcome?
While the multiple ETF applications targeting Dogecoin are subject to modifications, they affirm the growing institutional interest in providing regulated access to DOGE investments. It aligns with the prevailing trend of traditional finance players leading in the uptake of crypto products via regulated vehicles.
Market analysts are excited about the possible approval of the Dogecoin ETF. Nonetheless, the observers noted that the approval process faces diversity in timelines owing to the regulatory framework adopted. Given the stricter regulatory requirements, the 40 Act utilized by Rex Shares and Osprey is subject to extensive review periods.
The ETFs are set to track the market price of Dogecoin via direct ownership and the storage of assets by qualified custodians. Its structure differs from futures-based products seeking a more direct price exposure.
The market interest and trading volumes for DOGE are driving the ETF proposals. The presence of an active trading community adds to the large market value, making DOGE attractive for ETF development.
Following the spot Bitcoin ETF approval, the success witnessed has sustained the growing institutional demand for crypto investment products. The precedent could influence the review of pending Dogecoin ETF bids.
The stock exchange listings are set to emerge for the proposed DOGE ETFs though a field in which leading exchanges will likely have the rights. However, the trading infrastructure is bound to evolve for the crypto ETFs, informed by lessons from the existing Bitcoin and Ethereum ETFs.