Doge-based Exchange-Traded Fund (ETF) Application Filed by Bitwise, Clearing Path for Widespread Adoption

Doge-based Exchange-Traded Fund (ETF) Application Filed by Bitwise, Clearing Path for Widespread Adoption

In a significant development for the world of digital assets, the Securities and Exchange Commission (SEC) has declared that meme coins, such as Dogecoin (DOGE) and Shiba Inu (SHIB), are not considered securities. However, the regulatory body has issued a word of caution regarding potential fraud risks associated with these popular cryptocurrencies.

The potential launch of Exchange-Traded Funds (ETFs) for meme coins like Dogecoin and Shiba Inu could mark a key step in bridging the gap between traditional financial markets and the world of digital assets. Coinbase Futures' recent listing of Shiba Inu could be a step closer to realizing the SHIB ETF ambition, as proposed by Shytoshi Kusama, the pseudonymous lead developer of the Shiba Inu project.

Meanwhile, the NYSE Arca has filed a proposal to list and facilitate trading of the Bitwise Asset Management Dogecoin (DOGE) ETF. Pending approval from the SEC, the exchange would list the Bitwise Dogecoin ETF, providing investors with direct exposure to the popular meme coin. Coinbase Custody will serve as the custodian for the Bitwise Dogecoin ETF, while Bank of New York Mellon (BNY Mellon) will handle the cash holdings, administration, and record-keeping for the fund.

The filing states that NYSE Arca proposes to list and trade shares of the Bitwise Dogecoin ETF under NYSE Arca Rule 8.201-E. If approved, the Bitwise Dogecoin ETF would mark one of the first meme coin ETFs listed in the U.S., granting regulated access to Dogecoin for both retail and institutional investors.

The success of a Dogecoin ETF could serve as a catalyst for the development of Shiba Inu ETFs and potentially other meme coin funds. Shiba Inu, the second-largest dog-themed altcoin by market capitalization, has a strong following. Kusama stated that the approval of Ethereum's ETF is a significant milestone for both ETH and SHIB.

Following the shift in administration and the SEC's more crypto-friendly stance, there has been a surge of altcoin ETF applications from multiple issuers, including funds designed to track the prices of cryptocurrencies like Cardano, Solana, Polkadot, Litecoin, and XRP in the U.S.

However, it's important to note that no entity has yet received SEC approval to develop a Shiba Inu ETF, and as of now, there is no public indication that such approval will be granted in the near future. The SEC has approved Bitcoin and Dogecoin ETFs, but Shiba Inu has not been among them.

Michael Saylor, the CEO of MicroStrategy, has met with the SEC Crypto Task Force to push for clear digital asset regulations. This move could pave the way for a more favourable regulatory environment for the development and approval of meme coin ETFs in the future.

In conclusion, the potential introduction of ETFs for meme coins like Dogecoin and Shiba Inu offers new opportunities for investors to participate in the meme coin space while providing exposure to the broader trends driving these altcoins' growth. If approved, these ETFs could set a precedent for the future of meme coin investing, expanding the range of products available for retail and institutional investors alike.

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