Bitwise’s Dogecoin ETF moves forward as NYSE Arca files 19b-4

Bitwise Asset Management's proposed Dogecoin exchange-traded fund (ETF) is nearing launch. NYSE Arca has filed a 19b-4 proposal to list and trade its shares, as detailed in a March 3 filing. This rule change would allow the exchange to offer the Bitwise Dogecoin ETF, providing investors with direct exposure to Dogecoin on the NYSE Arca exchange.

The ETF, structured as a Delaware statutory trust, will be managed under a trust agreement with Bitwise as the sponsor. Its objective is to track Dogecoin's price, covering operational costs with net asset value calculations based on a CF Benchmarks Ltd. pricing benchmark. The ETF will hold Dogecoin directly, maintaining minimal cash reserves, and all fees, including Bitwise's management fee, will be paid in Dogecoin. The trust agreement disclaims any unintended acquisition of other digital assets, such as through forks or airdrops.

Investors will participate through cash creations and redemptions; direct Dogecoin contributions and withdrawals will not be permitted. Coinbase will serve as the Dogecoin custodian, while Bank of New York Mellon will handle cash custody, administration, and transfer agency functions.

Bitwise initially filed for the ETF's registration in late January, followed by an S-1 registration with the SEC on January 28. Other firms, including Rex Shares, Osprey Funds, and Grayscale, are also pursuing Dogecoin ETFs. Grayscale's application received SEC acknowledgement on February 13.

Bitwise also filed an S-1 for an Aptos ETF on February 27 with the Delaware Department of State. Approval could make Bitwise the first U.S. firm to launch an APT-based ETF.