21Shares Files For Dogecoin ETF Listing On Nasdaq

21Shares has filed for the listing of a Dogecoin Exchange-Traded Fund (ETF) on the Nasdaq, marking a significant step in the integration of cryptocurrencies with traditional financial markets. The filing, submitted to the U.S. Securities and Exchange Commission (SEC), seeks approval for the 21Shares Dogecoin (DOGE) ETF to be listed on the Nasdaq. The SEC is currently reviewing the proposal, having extended its assessment of a similar ETF by Bitwise until June 15.

The 21Shares Dogecoin ETF is designed as a passive fund product, avoiding the use of leverage, derivatives, and speculative trading methods. It aims to track the performance of Dogecoin by replicating its market value actions, using the CF DOGE-Dollar U.S. Settlement Price Index as a benchmark. The fund will provide investors with exposure to Dogecoin's price movements without the need to own the asset directly. Coinbase Custody Trust Company LLC will serve as the official custodian of the Dogecoin assets backing the ETF, ensuring that stakeholders do not engage with the actual currency directly. The "Dogecoin Counterparty" will handle trading in DOGE when customers issue or redeem shares for this ETF.

The Trust explicitly states that it will not engage in any Dogecoin-based reward generation. The Dogecoin held by the Trust will remain in its possession, and the Trust will avoid using Dogecoin for lending or revenue generation. This approach ensures that the fund operates without extra risks while staying committed to its main goal of providing passive exposure to Dogecoin. The regulatory framework of the ETF is also clearly outlined, with the Trust not falling under the registration requirements set by the Investment Company Act of 1940 or the Commodity Exchange Act of 1936. As a result, the fund operates outside the jurisdiction of the Commodity Futures Trading Commission, and its sponsor does not fall under the commodity trading advisor classification.

Nasdaq requires the ETF to comply with all existing trading standards that govern its platform. Forty thousand shares of the ETF must be in ready condition to proceed with listing, and the ETF will fall under regular surveillance of Nasdaq’s monitoring systems. The surveillance system aims to stop market manipulation and enhance market oversight functions, protecting investors better. Nasdaq's membership in the Intermarket Surveillance Group (ISG) strengthens its proposal by providing automated information-sharing capabilities that help uncover unusual activities.

21Shares, a cryptocurrency management company based in Switzerland, is dedicated to launching several crypto ETF products. The company is investigating the development of ETF funds that would include products for Solana, XRP, and various other alternative cryptocurrencies. The interest demonstrated by institutional investors toward digital assets continues to rise, and the market entry of the 21Shares Dogecoin ETF may represent a transformative moment for cryptocurrency acceptance between conventional financial institutions. The proposed approval will create a secure framework that allows investors to access Dogecoin exposure in a regulated manner, potentially bridging the gap between cryptocurrencies and traditional finance.