Bitwise Asset Management has started the process of filing for a Dogecoin exchange-traded fund (ETF). This move is part of the company's strategy to bring the product to market.
Details of Bitwise Filing
Bitwise Asset Management officially filed for a Dogecoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) on January 23. Matt Hougan, Bitwise's Chief Investment Officer, confirmed the filing, which is considered a preparatory step towards a full SEC application. A Delaware statutory trust was filed as part of the process, allowing Bitwise to establish clear governance and tax benefits, as well as separate any potential ETF assets from other company activities.
The Resurgence of Dogecoin
Dogecoin, created in 2013 by Markus and Jackson Palmer as a joke, has evolved into one of the most recognized cryptocurrencies. Interest in Dogecoin has surged in recent months, largely due to high-profile supporters such as Elon Musk. This has led to increased interest in its investment potential, making an ETF application almost inevitable.
Context of the Filing
The filing for a Dogecoin ETF doesn't come as a surprise to many. Nate Geraci, President of ETF Store, pointed out that Dogecoin is the seventh largest cryptocurrency by market cap, making it a compelling target for an ETF. In recent years, meme coins like Dogecoin have gained popularity not only in the U.S. but worldwide, prompting companies like Bitwise to explore financial products based on them.
Bitwise's filing for a Dogecoin ETF marks a significant step in the development of financial products based on meme coins. Similar actions could be expected for other cryptocurrencies in the future, demonstrating growing institutional investor interest in this segment.
