Dogecoin News Today: Grayscale Files Dogecoin ETF Application GDOG Spur Price Rise

Grayscale Investments has submitted a formal application to the U.S. Securities and Exchange Commission (SEC) to convert its existing Grayscale Dogecoin Trust into a spot ETF that would trade on the New York Stock Exchange Arca under the ticker symbol GDOG [1]. The trust, which currently holds Dogecoin as its sole asset and is valued at $2.5 million, is expected to operate as a passive, non-leveraged product. Coinbase Custody Trust Company will serve as the custodian for the Dogecoin held in the trust [2].

The ETF structure will issue and redeem shares in blocks called “Baskets,” with each representing 10,000 shares. Initial transactions will occur in cash, and the ETF’s net asset value will be calculated using the CoinDesk Dogecoin Reference Rate, reflecting the market price of Dogecoin without fees or liabilities [3]. The trust will not use leverage or derivatives and aims to track the performance of the underlying asset in a straightforward manner.

This move by Grayscale follows similar applications from other crypto-focused asset managers, including Bitwise and Rex-Osprey, who have also sought approval for Dogecoin ETFs [3]. The timing of the filing aligns with a recent uptick in interest in meme coins, as the price of Dogecoin has seen a modest rise in recent weeks. In the 24 hours following Grayscale’s filing, Dogecoin’s price increased by approximately 2.5%, reaching $0.22976 from $0.22395 [5]. Over the past seven days, the coin has gained 2.67%, and over the past month, it has risen by 14.65% [6].

Grayscale’s proposed ETF is intended to offer a compliant and accessible investment vehicle for both institutional and retail investors to gain exposure to Dogecoin without directly owning the cryptocurrency. This follows the firm’s broader strategy of shaping the regulatory environment for digital assets and its prior efforts, including a U.S. IPO filing. Should the SEC approve the application, the ETF could serve as a benchmark for Dogecoin-related investments and potentially drive greater institutional participation in the meme coin space [7].

However, the application also outlines key risks, including the inherent volatility of Dogecoin, regulatory uncertainty, and competition from other digital assets [8]. Grayscale has stated it will not proceed with any share offerings until the SEC formally approves the listing, in accordance with NYSE Arca’s guidelines.

The filing reflects a growing trend of institutional interest in meme coins and signals a broader push to integrate cryptocurrencies into traditional financial markets. The SEC’s response to this application will be closely watched as it may indicate shifting attitudes toward the regulation of digital assets.

Source:

[1] Grayscale Moves to Launch Dogecoin ETF (https://beincrypto.com/grayscale-moves-to-launch-dogecoin-etf/)

[2] Grayscale Files S-1 for Dogecoin ETF, DOGE Price Spikes (https://coingape.com/grayscale-files-s-1-for-dogecoin-etf-doge-price-spikes/)

[3] Grayscale Files For Dogecoin ETF, Eyes 'GDOG' Listing On ... (https://financefeeds.com/grayscale-files-for-dogecoin-etf-eyes-gdog-listing-on-nyse-arca/)