Bitwise presents a Dogecoin ETF amid growing interest in Memecoins.
Cryptocurrency asset manager Bitwise has filed documents with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) linked to the price of dogecoin (DOGE). The filing, known as an S-1 document, is necessary for companies intending to issue a new security and list it on a public stock exchange. This move comes after investment managers Rex Shares and Osprey Funds also filed documentation for several cryptocurrency ETFs, including those linked to dogecoin and other memecoins earlier this month.
The Bitwise filing stands out because it was made under the '33 Act, unlike the filings from Rex and Osprey under the '40 Act. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, highlighted this distinction. S-1 filings under the '33 Act are typically used for niche ETFs based on commodities, while filings under the '40 Act offer greater investor protection by requiring issuers to comply with additional SEC regulations. These regulations include limitations on leverage and short sales, as well as stricter oversight and fiduciary governance.
Bitwise is already the issuer of several cryptocurrency ETFs and has multiple pending applications, including one for an XRP ETF. While the S-1 document is an initial step towards launching an ETF, the most important filing is the 19b-4. This filing is necessary to indicate a required rule change at the stock exchange where the investment intends to list, which compels the SEC to comply with a strict deadline.
The concept of memecoin ETFs was once considered almost impossible under the SEC led by Gary Gensler, posing challenges for issuers attempting to launch a spot bitcoin ETF. However, the potential for such funds now seems more feasible following the inauguration of U.S. President Donald Trump. President Trump has not only committed to implementing cryptocurrency-friendly policies but has also launched his own memecoins, TRUMP and MELANIA, demonstrating his personal interest in the memecoin sector.