Crypto: Bitwise Files For A Dogecoin ETF With The SEC

Bitwise Files for Dogecoin Exchange-Traded Fund (ETF)

Bitwise, a crypto asset management company, has submitted an application to the Securities and Exchange Commission (SEC) to establish an exchange-traded fund (ETF) tracking Dogecoin (DOGE). This initiative follows Bitwise's earlier registration of a Dogecoin trust in Delaware.

Dogecoin ETF on the Horizon

Bitwise's SEC application aims to create an ETF that mirrors the price of Dogecoin, enabling investors to track the movements of the popular memecoin. The S-1 filing on January 28, 2025, comes amidst growing interest in crypto ETFs, especially those tied to memecoins like Dogecoin.

Matt Hougan, Bitwise's chief investment officer, stated: "Many individuals are eager to invest in Dogecoin. It's the sixth-largest crypto asset globally by market cap, with daily trading volumes exceeding $1 billion." This underscores the increasing demand for crypto investments despite the controversies surrounding memecoins.

Potential Risks and Considerations

However, Bitwise's application is not without risk. Dogecoin has recently experienced a 4% decline and may face an additional 37% drop if it breaches a crucial support level or if the SEC rejects the request.

Support from Pro-Crypto Administration

The current administration's favorable stance towards cryptos may facilitate the approval of the Dogecoin ETF. The recent launch of the U.S. Government Efficiency Department (D.O.G.E.), featuring the Dogecoin logo, has bolstered investor confidence in the potential approval of memecoin-based ETFs.

Advancement in Crypto Investments

Bitwise's Dogecoin ETF application represents a significant step forward in crypto investments. Its approval would open up new possibilities for investments based on memecoins, providing investors with a novel way to diversify their portfolios with popular digital assets.