Bitwise Asset Management has paved the way for what could be its first Dogecoin-focused exchange-traded fund (ETF).
On January 22, the company registered a Delaware statutory trust with Delaware’s Division of Corporations, a common preliminary step for launching financial products.
Following the news, DOGE’s value fell about 5% over the past 24 hours to trade at $0.35 at the time of writing, resulting in $11 million in trader liquidations, according to Coinglass data.
DOGE was also included in a series of Rex Shares filings for crypto ETFs earlier this week, including TRUMP and BONK.
Dogecoin ETF
While Bitwise has not released an official statement on the filing, analysts see this as an early-stage attempt to introduce a Dogecoin ETF.
Market observers pointed out that Bitwise’s filing represents a common preliminary step in crypto ETF application processes.
Eric Balchunas, Bloomberg senior ETF analyst, described this move was significant and hinted at the possibility of an impending filing with the U.S. Securities and Exchange Commission (SEC).
James Seyffart, another Bloomberg ETF analyst, also shared this view: enlightening on social media that this filing was not yet a formal filing with the SEC.
Dogecoin, which started as a joke, has since transformed into a prominent digital asset with a market capitalization of over $50 billion. Critics argue that memecoins like DOGE pose significant risks due to their speculative nature, raising questions about their suitability for institutional investors.
Polymarkt facts suggests a 48% chance that the SEC will approve a Dogecoin ETF this year.
Year of ETFs
Bitwise’s registration comes amid increasing institutional demand for crypto-related ETFs.
Data from Bloomberg shows that 33 crypto ETFs are currently under review by the SEC. Balchunas believes that the number of applications could rise further in the coming weeks, which would signal a growing demand for regulated investment options in the crypto market.
He wrote:
“Currently there are 33 crypto ETFs filed with the SEC, the list has doubled since Gensler left… We won’t be surprised if it reaches 50 within a week or two.”
However, despite the influx of registrations, the Bloomberg analyst predicted that spot Bitcoin ETFs will dominate the market. These funds have proven their appeal, attracting approximately $40 billion in inflows and managing more than $120 billion in assets since their inception.
Balchunas added:
“It’s starting to get crazy, but keep in mind that even if all of these things get approved, MOST OF THE MONEY WILL STILL BE IN AND GO TO BITCOIN ETFS.”
