Regulatory Limbo Stalls Dogecoin's ETF Dreams

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the Bitwise Dogecoin (DOGE) Exchange-Traded Fund (ETF) application, a move that has further stoked uncertainty in the growing ecosystem of altcoin ETFs. The delay comes less than a month after the SEC put the Grayscale Dogecoin Trust application on hold, signaling a continued cautious stance on regulating spot ETFs for cryptocurrencies beyond Bitcoin and Ethereum. This development adds to a broader regulatory landscape where the SEC appears to be waiting for clarity on the CLARITY Act and other legislative changes before proceeding with approvals.

Despite the regulatory hold, institutional interest in Dogecoin remains robust. The House of Doge has announced a strategic partnership with CleanCore Solutions Inc. to create a $175 million Dogecoin Treasury, pre-funded through securities purchases from CleanCore. The treasury will be managed with support from 21Shares, a leading asset manager in the crypto space, which has also filed its own S-1 form for a DOGE ETF with the SEC. The House of Doge, which serves as the corporate arm of the Dogecoin Foundation, will oversee strategic allocation, yield, and corporate governance for the treasury, with the goal of enhancing transparency and institutional adoption of DOGE.

However, the announcement had an unexpected impact on CleanCore’s share price, which dropped by over 52.92% on the news, closing on Sept. 2 with a steep loss. This stark reaction contrasts with typical market responses to crypto treasury announcements and highlights the volatility and uncertainty that continue to characterize altcoin-related financial products.

Meanwhile, the regulatory timeline for DOGE ETFs remains unpredictable. While the SEC typically aims to respond to S-1 registrations within four weeks, the review process can extend up to 240 days. This timeline mirrors the protracted approvals seen with Bitcoin and Ethereum ETFs, where both regulators and applicants had to navigate multiple rounds of revisions. For 21Shares, the next critical step involves submitting the 19b-4 form to officially initiate the approval clock. Bitwise has already submitted both the S-1 and 19b-4 forms, positioning it as a leading candidate in the race to launch a spot DOGE ETF.

Grayscale, another key player, launched a Dogecoin Trust in January 2025 and has since sought to convert it into a spot DOGE ETF. The SEC acknowledged Grayscale’s 19b-4 filing in February 2025, and a final decision is expected by October 2025. Similarly, Osprey Funds and REX Shares filed the first DOGE ETF registration on Jan. 21, 2025, and are also awaiting a regulatory response. These pending applications indicate that the market is actively preparing for potential approvals, despite the SEC’s current delays.

The prospect of a DOGE ETF faces additional hurdles, including the requirement for a futures-based product to have traded on U.S. exchanges for 18 to 24 months. At present, there is only one DOGE ETP available—the Nordic Valour ETP, which launched on Sweden’s Spotlight Stock Market in November 2024. Furthermore, the influence of high-profile figures, such as Elon Musk, who serves as the head of the government’s Department for Government Efficiency (DOGE), introduces potential conflicts of interest that may complicate the regulatory approval process. Given these considerations, XRP and Litecoin (LTC) may be stronger candidates for the next spot crypto ETF approvals.