Bitwise's Dogecoin ETF Takes Major Step Towards Launch
1min read Bitwise Asset Management's Dogecoin exchange-traded fund (ETF) has taken a significant step towards launch, with NYSE arca filing a 19b-4 proposal to list and trade its shares. The proposed rule change, filed on March 3, would enable the exchange to offer the bitwise Dogecoin ETF, providing investors with direct exposure to the popular memecoin on the New York Stock Exchange subsidiary.
The ETF is structured as a Delaware statutory trust and will be managed under a trust agreement, with Bitwise acting as the sponsor. The fund's primary objective is to track Dogecoin's value while covering its operational costs. Net asset value calculations will be tied to a pricing benchmark from CF Benchmarks Ltd. Unlike some other crypto ETFs, the Bitwise Dogecoin ETF will directly hold Dogecoin, with only minimal cash reserves for operational purposes.
Fees associated with the ETF, including Bitwise's management fee, will be paid in Dogecoin. The fund has disclaimed any unintended receipt of other digital assets, such as from forks or airdrops, under its trust agreement. The fund will use cash creations and redemptions, meaning investors won't be able to contribute or withdraw Dogecoin directly.
Coinbase has been named as the fund's Dogecoin custodian, while the bank of new york mellon will handle cash custody, administration, and transfer agency functions. Bitwise initially filed for the registration of a Bitwise Dogecoin ETF in late January and followed up with an S-1 registration with the SEC on Jan. 28.
Bitwise is not the only firm eyeing a Dogecoin ETF. Rex Shares and Osprey Funds have also submitted filings for similar products alongside Grayscale. The SEC acknowledged Grayscale's application on Feb. 13. Meanwhile, Bitwise has also submitted its S-1 for an Aptos ETF on Feb. 27, filing with the Delaware Department of State. If approved, the issuer could be the first firm in the U.S. to launch an APT-based ETF.
