TLDR
- Bitwise has formalized their Dogecoin ETF plans with an official SEC S-1 filing on January 28, 2025
- The filing follows competitor submissions from Rex Shares and Osprey Funds under different regulatory frameworks
- Filing structures differ – Bitwise chose “33 Act” route while others opted for stricter “40 Act” regulation
- A Delaware registration preceded Bitwise’s SEC filing
- If approved, the ETF would provide traditional market access to DOGE without direct crypto ownership
Investment management firm Bitwise took a major step toward launching a spot Dogecoin ETF by submitting its S-1 registration statement to the Securities and Exchange Commission on January 28, 2025. The filing represents a concrete move to bring the popular cryptocurrency to traditional investment platforms.
The registration follows Bitwise’s preliminary steps earlier in the month, when the company registered its intent in Delaware on January 22. This progression from state-level registration to formal SEC filing demonstrates the company’s methodical approach to launching a cryptocurrency investment product.
Competition in the cryptocurrency ETF space has intensified rapidly. Just a week before Bitwise’s filing, both Rex Shares and Osprey Funds submitted their own registration documents on January 21. These firms cast a wider net, seeking approval for ETFs tracking multiple digital assets including Official Trump (TRUMP), Solana (SOL), Bitcoin (BTC), and Ripple (XRP).
Industry analysts have noted key differences in the regulatory approaches chosen by the competing firms. According to Bloomberg ETF analyst Eric Balchunas, Bitwise selected to file under the Securities Act of 1933, commonly called the “33 Act.” This legislation typically oversees specialty and commodity-based ETF products.
The alternative path, chosen by Rex Shares and Osprey Funds, involves filing under the Investment Company Act of 1940. This “40 Act” framework implements stricter regulatory oversight and contains more robust investor protection measures, including limitations on leverage and short-selling activities.
A successful Dogecoin ETF launch would mark a transformation in how traditional investors can access the cryptocurrency market. ETF structures eliminate the technical barriers of cryptocurrency ownership, removing the need for digital wallets or direct exchange participation.
The proposed investment vehicle would offer several advantages to potential investors. ETFs typically provide enhanced liquidity, allowing for easy entry and exit from positions. They also tend to operate with lower management costs compared to actively managed funds, while offering transparent pricing and trading volume data.
Market watchers have expressed varying opinions about the timing of these applications. The CryptoQuant CEO recently commented on the evolving landscape of meme cryptocurrencies, noting former President Trump’s influence on the sector’s growing mainstream appeal.
However, some legal experts maintain reservations about meme coin investment products. On January 16, Max Buwick from Burwick Law voiced concerns about the fundamental nature of meme coins, suggesting they might not serve long-term investor interests effectively.
Bitwise’s formal SEC filing contains detailed information about the proposed ETF’s structure and operations. The document outlines how the fund would track Dogecoin’s market price and manage the underlying cryptocurrency assets through qualified custodians.
The multiple pending applications indicate rising institutional interest in providing regulated cryptocurrency investment options. This trend aligns with the broader movement of traditional financial institutions expanding their digital asset offerings.
Timeline expectations for the approval process vary based on the chosen regulatory framework. Applications filed under the 40 Act may face longer review periods due to their more comprehensive regulatory requirements, while 33 Act applications might follow a different timeline.
Trading considerations form a crucial part of the ETF proposals. The funds would need to establish reliable pricing mechanisms and ensure sufficient market liquidity to support smooth trading operations. Major exchanges would likely compete for listing rights if the SEC grants approval.
Recent market data suggests sustained demand for cryptocurrency investment products, particularly following other digital asset ETF approvals. This established precedent could influence how regulators approach the Dogecoin ETF applications.
The cryptocurrency’s active trading community and substantial market presence make it an attractive candidate for ETF development. However, the approval process must address various regulatory concerns, including asset custody, market manipulation prevention, and investor protection measures.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support