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Bitwise Files for Dogecoin ETF, Signaling Mainstream Acceptance

Coin WorldTuesday, Jan 28, 2025 5:58 pm ET

1min read

Bitwise Asset Management has taken a significant step in the cryptocurrency landscape by filing to launch a Dogecoin ETF, signaling the growing acceptance of meme-based cryptocurrencies in mainstream finance. This move comes after Bitwise registered a Dogecoin trust in Delaware, reflecting an increasing interest from institutional investors in digital assets, particularly those with substantial community support.

James Seyffart, a Bloomberg ETF analyst, emphasized the importance of this filing, stating: “This makes it official with the SEC,” underlining the growing legitimacy of Dogecoin within financial markets. Bitwise's strategic move to launch a Dogecoin ETF not only signals a shift in the acceptance of meme-based cryptocurrencies but also illustrates the evolving landscape of cryptocurrency investment options available to the public.

The potential approval of a Dogecoin ETF represents a pivotal moment for both investors and issuers. As Dogecoin has achieved a remarkable $47 billion market cap and currently holds the rank of the eighth-largest cryptocurrency, the ETF aims to bring greater liquidity and stability to trading DOGE. Additionally, Bitwise’s reliance on Coinbase Custody for safekeeping the DOGE assets showcases the growing trust in established platforms within the crypto space.

Apart from the Dogecoin ETF, Bitwise intends to broaden its cryptocurrency offerings. The firm has launched proposals for both Solana (SOL) and XRP (XRP) ETFs, aiming to cater to diverse investor interests. This competitive drive follows Bitwise’s listing of a Bitwise 10 Crypto Index Fund designed to track a selection of the top cryptocurrencies, thus reinforcing its commitment to providing comprehensive crypto investment opportunities.

Despite the filing excitement, it is important to recognize the current sentiment in the broader crypto market. An observation shared among analysts shows that Dogecoin has recently experienced declines of about 1.2% in the last hour and 3.3% over the past day, correlating with widespread market downturns. However, such fluctuations are typical in the volatile landscape of digital currencies, emphasizing the need for careful investment strategies.

As Bitwise advances its proposal, the regulatory landscape surrounding cryptocurrency ETFs remains a critical aspect to monitor. The process requires a 19b-4 filing alongside the S-1, which initiates the SEC’s evaluation for approval

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