Grayscale, a known investment company, has taken a significant step towards launching a Dogecoin ETF by filing Form S-1 with the SEC.
Grayscale's ETF Application
Grayscale has filed Form S-1 with the U.S. Securities and Exchange Commission (SEC), detailing the conversion of its existing Grayscale Dogecoin Trust into a publicly traded ETF, proposed under the name Grayscale Dogecoin Trust ETF with the ticker 'GDOG' on NYSE Arca.
Structure and Support for the ETF
The ETF will be fully backed by Dogecoin, allowing investors direct access to the cryptocurrency without needing to buy or store it themselves. According to the filing, Dogecoin will be held in safekeeping by Coinbase Custody Trust Company, while BNY Mellon will act as the ETF's administrator and transfer agent. Coinbase Inc. is designated as the ETF’s prime broker. Shares will be issued and redeemed in blocks of 10,000, known as 'Baskets,' and all transactions will be settled in cash. This mechanism aims to keep the ETF's price aligned with the actual market value of Dogecoin.
Market Response to the News
The news of the application boosted Dogecoin's price, which rose between 2% and 4% in the hours following the filing. This rally pushed DOGE to around the $0.23 level as traders and investors speculated on the potential approval of one of the first meme-coin ETFs in the U.S.
Grayscale's application for a Dogecoin ETF highlights the growing interest in regulated investment products tied to alternative cryptocurrencies, which may attract new investors to the market.
