Bitwise Moves Forward with Dogecoin ETF Filing
Crypto asset management firm Bitwise has taken a significant step by submitting documents to the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) linked to the price of Dogecoin (DOGE). This filing, categorized as an S-1 document, is a necessary requirement for companies aiming to issue a new security and secure a listing on a public stock exchange.
Earlier this month, other investment managers, including Rex Shares and Osprey Funds, also filed paperwork for multiple crypto ETFs, incorporating Dogecoin among various other memecoins. However, Bitwise’s approach is noteworthy as it has chosen to file under the ‘33 Act, contrasting with Rex and Osprey, which filed under the 40 Act. This distinction was highlighted by Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence.
S-1 filings under the ‘33 Act are typically associated with niche, commodity-based ETFs. In contrast, filings under the 40 Act offer enhanced investor protection since they require the issuer to comply with additional SEC regulations. Such regulations include limitations on leverage and short-selling, as well as stricter fiduciary oversight and governance.
Bitwise is already known for being the issuer of several crypto ETFs and currently has multiple applications pending, including one for an XRP (XRP) ETF. While the S-1 filing represents a preliminary step towards launching an ETF, the pivotal document remains the 19b-4, which is necessary to initiate a required rule change at the stock exchange that intends to list the investment. This document also binds the SEC to a stringent deadline.
The concept of memecoin ETFs, once considered a far-fetched investment option during Gary Gensler’s tenure at the SEC—when issuers faced considerable challenges in launching a spot Bitcoin ETF—now appears increasingly viable. The shifting landscape has become more favorable following the inauguration of President Donald Trump. Not only has Trump advocated for crypto-friendly policies, but his own ventures into the memecoin space with the launches of TRUMP and MELANIA have underscored his personal interest in this burgeoning sector.
