NYSE Arca has officially filed a proposed rule change to list and trade shares of the Bitwise Dogecoin ETF, marking a significant step toward bringing a regulated memecoin exchange-traded fund (ETF) to the U.S. market.
On March 3, the New York Stock Exchange (NYSE) subsidiary submitted its 19b-4 filing with the Securities and Exchange Commission (SEC). If approved, this would allow NYSE Arca to list the Bitwise Dogecoin ETF, providing investors with direct exposure to Dogecoin (DOGE) through a regulated investment vehicle.
Custody and Fund Structure
- Coinbase will serve as the Dogecoin custodian, ensuring the safekeeping of assets.
- Bank of New York Mellon will handle cash custody, fund administration, and transfer agency functions.
- The ETF will utilize a cash creation and redemption mechanism, meaning investors cannot deposit or withdraw Dogecoin directly—all transactions will be settled in cash.
Bitwise had previously filed an S-1 registration form for the ETF with the SEC in late January, setting the groundwork for regulatory review.
Potential Impact of a Dogecoin ETF
If approved, the Bitwise Dogecoin ETF would be among the first U.S.-listed memecoin ETFs, offering institutional and retail investors regulated exposure to Dogecoin’s price movements.
However, the crypto market did not respond positively to the news. Dogecoin prices dropped over 15%, falling to $0.19 amid a broader market correction that erased gains from Donald Trump’s U.S. Crypto Strategic Reserve announcement on March 2.
SEC’s Review Timeline and Other ETF Filings
- On Feb. 13, the SEC acknowledged Grayscale’s application for a Grayscale Dogecoin Trust, officially initiating the review process. A final decision is expected around mid-October.
- On March 3, the Nasdaq filed a similar rule change with the SEC to list and trade shares of the Grayscale Hedera Trust, which would track HBAR, the native token of the Hedera Network.
- Additionally, in late February, the Nasdaq filed to list a Hedera ETF from Canary Capital, further expanding ETF options for altcoins.
Growing Momentum for Altcoin ETFs
The recent filings reflect a surge in altcoin ETF applications, with issuers seeking approval for funds that track the prices of Cardano (ADA), Solana (SOL), Polkadot (DOT), Litecoin (LTC), and XRP.
This wave of crypto ETF applications follows a shift in regulatory sentiment, as the SEC adopts a more crypto-friendly approach under the new administration.
With increasing demand for alternative crypto investment products, the approval of a Dogecoin ETF could set a precedent for further altcoin-based ETFs in the U.S. market.
