Key Takeaways:
- NYSE Arca’s Dogecoin ETF proposal could make DOGE accessible to a broader range of investors.
- Coinbase and BNY Mellon have been appointed to oversee custody and administration, reinforcing the importance of institutional-grade security.
- SEC signoff is far from guaranteed, and Dogecoin’s built-in volatility threatens massive risk.
The progression with the digital asset market is moving swiftly, and perhaps no more recent development has the crypto world buzzing than the recent official filing of a proposed rule change (Form 19b-4) by NYSE Arca, a subsidiary of the New York Stock Exchange, with the U.S. Securities and Exchange Commission (SEC) that proposes listing and trading shares of the Bitwise Dogecoin ETF on its exchange. This is a potentially major move to integrate Doge into the universe of regulated investment products, but it raises some important questions about memecoins such as Doge and their place in the financial mainstream.
NYSE Arca proposes to list and trade the Bitwise Dogecoin ETF under its Commodity-Based Trust Shares Rule 8.201-E and has submitted the relevant rule change proposal. https://t.co/yBdLR9bGoB
— Wu Blockchain (@WuBlockchain) March 3, 2025
Decoding the Proposal’s Key Components: Bitwise Dogecoin ETF
The filing, submitted to the SEC on March 3 of this year, states that NYSE Arca seeks, pursuant to Rule 8.201-E (Commodity-Based Trust Shares), to list and trade shares of the Bitwise Dogecoin ETF. DOGE is a cryptocurrency that started as a joke but has grown into a major web asset with a loyal community, making the ETF bring investors closer to the price action.
Bitwise Dogecoin ETF
The structure of this ETF is relatively simple. Partnerships with reputable institutions are crucial to the ETF’s structure. Coinbase Custody, the most reputable name in digital asset security, is intended to serve as the custodian of the Dogecoin holdings. Their recognized reputation helps them to assure the ETF’s assets to be properly secured. On the other hand, BNY Mellon, an experienced financial institution with a history of several decades, will manage the necessary cash-based operations such as administration and transfer agents. This keeps the money side of the ETF operating smoothly and instills confidence in the structure.
Importantly, both creations and redemptions will take place in cash. This important detail of the ETF design helps mitigate the challenges or risks that could accompany direct movements of Dogecoin in and out of the fund. This reduces operation complexity and provides additional security in the operation.
Market Reaction: A Muted Response Reflects Underlying
Although this announcement has serious potential implications, Dogecoin’s market price has shown a relatively muted reaction. Contrary to expectations of a bullish surge, Dogecoin’s value actually experienced a decline of over 15% on the day. This decrease, which resulted in the price being set at around $0.19, shouldn’t be a surprise as the entire cryptocurrency market seems to be experiencing a correction period.
But as of now, ETFs have provided exposure to other coins and tokens that have exhibited large increases. Thus, some are looking forward to a similar outcome with Dogecoin ETF.
The Expanding World of Altcoin ETFs: A Deeper Shift Is Afoot
The NYSE Arca proposal is not operating in a vacuum. Nasdaq is seeking to also list similar funds tracking HBAR. There are other altcoins seeking inclusion in an ETF.
🚨 This is HUUUGE for $HBAR!!
“Grayscale Files 19b-4 For Hedera ETF With US SEC”
“Grayscale is next in line with push for an Hedera ETF product”
“Nasdaq Stock Market has filed the 19b-4 for the product”
“Grayscale now joins Canary Capital as push for altcoin ETF offerings… pic.twitter.com/lMO9Vi8br4
— Mark (@markchadwickx) March 4, 2025
The SEC has overall responsibility for making sure all ETF proposals meet those regulatory obligations. If those conditions can be met, coins like: Cardano (ADA), Solana (SOL), Polkadot (DOT), Litecoin (LTC), and XRP could be included in ETFs. This points to growing competition in a landscape that is currently very niche and has not yet expanded, but has a lot of potential for this coming year.
More Altcoin ETFs
– New crypto ETFs are being planned beyond Solana, XRP, and Litecoin. Filings now focus on Polkadot (DOT), Cardano (ADA), and Hedera (HBAR).
– Nasdaq filed a 19b-4 for Grayscale’s Polkadot ETF. 21Shares also made a similar proposal. DOT has a $7 billion… https://t.co/kwUQBpkp4o pic.twitter.com/fhBEXNTXK2
— Cryptopolitan (@CPOfficialtx) February 26, 2025
SEC’s Decision: Balancing Innovation and Investor Protection
An approval would place Dogecoin more directly in front of investors, and it might also serve as a precedent for listing other coins on ETFs. It could also usher in more regulation of the space, something that many believe would help make things safer for investors. Alternatively, a US ETF rejection from the SEC could push back the market and stagnate growth. The agency will have to balance innovation against the potential harms to market stability and the risk of fraud.
Importantly, the SEC has already begun reviewing Grayscale’s Dogecoin Trust filing since February 13th. By that date, they are expected to rule on the matter by October.
More News: SEC Acknowledges Grayscale’s XRP & Dogecoin ETF Filings: A Game Changer or Regulatory Roadblock?
Nasdaq Enters the Competition: Intensifying the ETF Landscape
The potential for profit from this is well-known and has attracted the likes of Nasdaq to the fight. In March, Nasdaq also proposed a listing to the SEC for the Grayscale Hedera Trust. This shows the high demand for crypto investments and how competitive the market is to secure these products.
