Dogecoin ETF: NYSE Arca Takes Step Towards Regulation, SEC Decision Looms

NYSE Arca has taken a significant step towards the listing of a Bitwise Dogecoin ETF, submitting a 19b-4 filing on March 3. This move brings the possibility of a regulated investment product for the popular memecoin one step closer to reality. If approved by the SEC, this ETF would provide institutional and retail investors with direct exposure to Dogecoin without the need to hold the asset directly. Coinbase will serve as the custodian, while the Bank of New York Mellon will manage cash custody and administration.

Market confidence in the approval of a Dogecoin ETF is growing, with Polymarket indicating a 67% chance of approval and Bloomberg analysts placing odds at 75% by 2025. This optimism reflects a broader belief in the regulatory acceptance of crypto-based investment vehicles. However, the final decision from the SEC remains uncertain, and the outcome could still sway either way.

Despite the growing optimism surrounding the potential ETF, Dogecoin's price has dropped over 15% to $0.19, amid broader market volatility. Trading volume has also decreased by 16.80%, indicating weaker market activity. This decline comes after a brief boost in sentiment following Donald Trump's crypto reserve announcement, which has since been erased by the overall market downturn. The price rally driven by ETF speculation alone has proven insufficient to sustain Dogecoin's price.

The interest in altcoin ETFs continues to grow, with the Nasdaq filing to list the Grayscale Hedera Trust, which would track HBAR's price. The SEC is also reviewing proposals for Cardano (ADA), Solana (SOL), Polkadot (DOT), Litecoin (LTC), and XRP, indicating that memecoins and major altcoins are gaining traction in the regulated investment space.

As the SEC reviews both Bitwise's Dogecoin ETF and Grayscale's Dogecoin Trust, the coming months could be crucial for the potential mainstream adoption of Dogecoin as a tradable investment vehicle. A final decision on the Grayscale Dogecoin Trust is expected by mid-October. However, until approval is confirmed, price volatility is likely to persist.