The U.S. Securities and Exchange Commission (SEC) is currently reviewing Bitwise's application for an exchange-traded fund (ETF) focused on the cryptocurrency Dogecoin.
Current Status of the ETF Review
NYSE Arca submitted a 19b-4 form seeking approval for the ETF, following Bitwise's earlier S-1 submission. Coinbase Custody will manage the Dogecoin assets, while the Bank of New York Mellon will handle cash assets and administration.
Applicant Competition
Alongside Bitwise, companies such as Grayscale and Rex Shares have filed for a Dogecoin ETF. Grayscale's application has already been acknowledged by the SEC, placing it further along in the review process and making it a strong competitor in the ETF space.
Market and Dogecoin Outlook
Ahead of the application review, market sentiment has become more positive. Polymarket reports an increase in the approval probability to 67%, while Bloomberg analysts predict a 75% chance of approval by 2025. However, DOGE's price volatility remains a concern; its price recently dropped by nearly 16%, and trading volume decreased by 17%.
Overall, despite growing optimism surrounding the Dogecoin ETF creation, Dogecoin's price volatility continues to pose a risk for investors. However, the establishment of an ETF could be a significant step in increasing its accessibility on traditional markets.
