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Bitwise Seeks SEC Nod for Dogecoin ETF Amid Crypto Boom

Coin WorldTuesday, Jan 28, 2025 7:37 pm ET

1min read

Bitwise Asset Management has taken a significant step in the cryptocurrency market by filing an application for a Dogecoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). This move comes amidst a growing acceptance of cryptocurrencies in mainstream finance and a surge in interest from investors.

The proposed Dogecoin ETF, if approved, would provide investors with a unique opportunity to gain exposure to the price movements of the eighth-largest cryptocurrency by market capitalization. Currently, Dogecoin is trading at approximately $0.32, showing significant volatility since reaching a high of $0.475 last November, notably when Elon Musk's social media activity spiked.

The regulatory climate surrounding cryptocurrencies has evolved, with U.S. officials recently approving Bitcoin and Ethereum-based ETFs in early 2024. Such approvals have led to a surge of over $4 billion in investments, as reported by Coin Shares in a recent study. This momentum signals a potential softening of skepticism from regulators, paving the way for additional products like Bitwise's proposed Dogecoin ETF. The application signifies that both the market and regulatory bodies are embracing a broader array of crypto assets.

Bitwise's application follows the firm's registration of a statutory trust, forming the requisite legal framework needed for the fund. As the SEC evaluates the application, it is important to note that the commission typically has a 45-day period to make an initial decision, which can be extended, culminating in a final ruling within 240 days. With other asset managers also applying for various crypto-based products, the competitive landscape is heating up, potentially leading to a table full of new options for investors.

If approved, the Dogecoin ETF would join Bitwise's existing products, which include the Bitwise Bitcoin ETF and Bitwise Ethereum ETF. The introduction of this fund could attract institutional investors looking for diversified avenues into the cryptocurrency market. Given Dogecoin's status as a highly recognizable meme coin, its ETF could serve as a bridge for traditional investors who are curious about the potential for profits in this volatile sector. As adoption increases, Dogecoin is positioned to become an integral part of retail investment strategies.

Beyond Dogecoin, Bitwise has expressed intent to broaden its digital asset offerings with

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