Grayscale's GDOG ETF Faces SEC Hurdles as Altcoin Market Awaits Clarity

Grayscale has filed an amended S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to convert its Dogecoin Trust into an exchange-traded fund (ETF), seeking approval for the product to trade under the ticker on NYSE Arca . The filing leverages recently approved, more lenient listing standards for crypto funds, which could streamline the regulatory process. Grayscale has selected Coinbase as the fund’s prime broker and custodian, aiming to provide investors with a regulated vehicle for exposure to Dogecoin, the popular meme coin . The company also highlighted that Dogecoin meets the SEC’s new requirement for a digital asset to have a futures market on a regulated exchange for at least six months .

The SEC’s decision on the GDOG ETF remains pending, with the agency extending its review period to . This delay aligns with the broader backlog of altcoin ETF applications, including proposals for Dogecoin, Solana, and XRP. As of August 2025, 92 crypto-related ETF products were under SEC review, with institutional interest concentrated on Solana and XRP . Grayscale’s effort to reposition its Dogecoin Trust as an ETF reflects its broader strategy to align its products with the new regulatory framework, following the successful conversion of its Bitcoin Trust (GBTC) into the first U.S. spot Bitcoin ETF in 2024 .

The SEC’s recent approval of for commodity-based exchange-traded products (ETPs) could accelerate the approval process for crypto ETFs. These standards allow exchanges to list products without individual SEC reviews, reducing barriers to market access . Grayscale’s Digital Large Cap Fund, which tracks the CoinDesk 5 Index, was among the first to benefit from this rule change. The agency also approved options tied to the Cboe Bitcoin U.S. ETF Index, signaling a shift toward broader acceptance of crypto-linked products .

Grayscale’s GDOG ETF filing is part of a wave of altcoin ETF applications, with four Dogecoin ETFs under SEC review as of September 2025. The Rex Shares Osprey DOGE ETF, filed under the “40 Act” framework, could be the first to launch if not objected to by the SEC . Meanwhile, Bitwise and 21Shares have submitted S-1 filings for their Dogecoin ETFs, with deadlines stretching into early 2026. Analysts note that the SEC’s recent delays—such as pushing back the Bitwise Dogecoin ETF decision to November 12—highlight the agency’s cautious approach to altcoin products .

The potential approval of a Dogecoin ETF could significantly impact the market. Historical patterns suggest that ETF listings for Bitcoin and Ethereum correlated with increased demand and price appreciation for the underlying assets . Eric Balchunas, a senior analyst at Bloomberg, estimates a of Dogecoin ETF approval in 2025, citing the SEC’s growing familiarity with crypto products . However, challenges remain, including the SEC’s scrutiny of hedging mechanisms and liquidity risks inherent in altcoins like Dogecoin .

Grayscale’s broader strategy to convert its Litecoin and Bitcoin Cash Trusts into ETFs underscores its commitment to aligning with regulatory developments. The company aims to enable daily share creations and redemptions on national exchanges, addressing the liquidity issues seen in over-the-counter trading . This approach mirrors the success of GBTC’s transformation into a spot Bitcoin ETF, which marked a pivotal moment in crypto adoption .

As the SEC continues its review, market participants await clarity on the regulatory path for altcoin ETFs. The outcome for GDOG could set a precedent for other meme coins and smaller cryptocurrencies, potentially reshaping investor access to the crypto market .

[1] Grayscale Files Amended S-1 to Launch Dogecoin ETF (https://www.cryptotimes.io/2025/09/20/grayscale-files-amended-s-1-to-launch-dogecoin-etf/)

[2] SEC delays Bitwise Dogecoin and Grayscale Hedera ETF decisions (https://cointelegraph.com/news/sec-pushes-back-decisions-bitwise-grayscale-crypto-etfs-november)

[3] Full list of Dogecoin ETFs: Filings, Dates, Deadlines (https://coinpedia.org/news/full-list-of-dogecoin-etfs-filings-dates-deadlines-updates-and-more/)

[4] SEC Makes Spot Crypto ETF Listing Process Easier (https://www.coindesk.com/policy/2025/09/17/sec-makes-spot-crypto-etf-listing-process-easier-approves-grayscale-s-large-cap-crypto-fund)

[12] From high yields to potential collapse: Deconstructing the logic (https://www.gate.com/learn/articles/from-high-returns-to-potential-collapse-an-article-deconstructing-the-logic-behind-usde-incentives/10965)