Bitwise Asset Management has laid the groundwork for its potential first Dogecoin exchange traded fund (ETF).
On Jan. 22, the firm registered a Delaware statutory trust with Delaware’s Division of Corporations, a common preparatory step for launching financial products.
Following the news, DOGE’s value fell by around 5% in the last 24 hours to trade at $0.35 as of press time, resulting in $11 million in trader liquidations, according to Coinglass data.
DOGE appeared in Rex Shares’ filings for crypto-ETFs including BONK and TRUMP earlier this week.
Dogecoin ETF
Analysts believe that Bitwise is still in the early stages of introducing a Dogecoin ETF, despite not having released an official statement.
Market observers pointed out that Bitwise’s filing represents a common preliminary step in crypto ETF application processes.
Eric Balchunas, Bloomberg’s senior ETF analyst, described the move as significant and hinted at the possibility of an imminent application to the US Securities and Exchange Commission (SEC).
James Seyffart is another Bloomberg ETF Analyst who also expressed this opinion, clarifying via social media that the filing had not been submitted to SEC yet.
Dogecoin started as a hoax, but it has evolved into an important digital asset, with a value of more than $50 billion. Some critics claim that due to the speculative nature of memecoins, such as DOGE, they carry significant risk. This raises questions regarding their suitability for institutions.
Polymarket data indicates that there is a 48 percent chance the SEC approves a Dogecoin-based ETF in this year.
The Year of the ETF
Bitwise’s registration comes amid a rising institutional appetite for crypto-related ETFs.
Bloomberg reports that the SEC has 33 crypto-ETFs under consideration. Balchunas thinks the SEC will review more crypto ETFs in the next few weeks. This indicates a growing need for investment options that are regulated in the cryptocurrency market.
“He wrote:
“33 crypto ETFs now currently filed with SEC, the list doubled since Gensler left… Won’t be surprised if it hits 50 within a week or two.”
Bloomberg analyst has predicted, that despite this influx, spot Bitcoin ETFs are going to dominate the market. Since their launch, these funds have attracted around $40 billion of inflows. They also manage over $120 billion worth of assets.
Balchunas added:
“It’s getting crazy but keep in mind that even if all this stuff is approved, THE BULK OF THE MONEY WILL STILL BE IN AND GO TO SPOT BITCOIN ETFS.”
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