🌎 Dogecoin ETF Moves Closer to Launch

Dogecoin ETF Moves Closer to Launch as NYSE Arca Files 19b-4 Proposal

A significant step has been taken towards the launch of Bitwise Asset Management’s Dogecoin exchange-traded fund (ETF), with NYSE Arca filing a 19b-4 proposal to list and trade its shares.

The proposed rule change, as per the filing, would enable the exchange to offer the Bitwise Dogecoin ETF, providing investors with direct exposure to the popular memecoin on the New York Stock Exchange subsidiary.

ETF Structure and Management

The ETF is structured as a Delaware statutory trust and will be managed under a trust agreement, with Bitwise acting as the sponsor. The fund’s primary objective is to track Dogecoin’s value while covering its operational costs, with net asset value calculations tied to a pricing benchmark from CF Benchmarks Ltd.

Notably, the ETF will directly hold Dogecoin, with only minimal cash reserves for operational purposes, instead of using derivatives. Any fees, including Bitwise’s management fee, will be paid in Dogecoin.

Key Features and Partnerships

The fund will use cash creations and redemptions, meaning investors won’t be able to contribute or withdraw Dogecoin directly. Coinbase has been named as the fund’s Dogecoin custodian, while the Bank of New York Mellon will handle cash custody, administration, and transfer agency functions.

Bitwise filed for the registration of a Bitwise Dogecoin ETF in late January and followed up with an S-1 registration with the SEC on January 28.

Competition and Market Developments

Bitwise isn’t the only firm eyeing a Dogecoin ETF. Rex Shares and Osprey Funds have also submitted filings for similar products alongside Grayscale. The commission acknowledged Graysacle’s application on February 13.

Additionally, Bitwise submitted its S-1 for an Aptos ETF on February 27, filing with the Delaware Department of State. If approved, the issuer could be the first firm in the U.S. to launch an APT-based ETF.