Bitwise Makes a Bid to Launch the First Spot Dogecoin ETF in the U.S.

It would be the first memecoin ETF.

Bitwise Asset Management has filed to establish a Delaware-based trust for its proposed Dogecoin exchange-traded fund (ETF), according to a recent filing with the U.S. Commodity Futures Trading Commission (CFTC).

The filing suggests that the firm will soon submit an application to the U.S. Securities and Exchange Commission for regulatory review.

Bitwise, which manages over $5 billion in assets as of October 2024, is also seeking approval to launch its Bitwise XRP and Solana ETFs. These filings are currently under review.

Bitwise currently offers US-listed spot Bitcoin and Ethereum ETFs. Its Bitcoin fund (BITB) has attracted $2.4 billion in net inflows since launch, trailing only BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). BITB has accumulated $4.5 billion in assets under management.

The success of Bitcoin and Ethereum ETFs, along with a crypto-friendly White House under Trump, has encouraged fund managers to explore other digital asset products.

Following the anticipated departure of SEC Chair Gary Gensler, there has been a surge in ETF filings by U.S. asset managers, Bloomberg’s Balchunas noted earlier this month. While Bitcoin and Ether ETFs continue to dominate demand, there is also interest in XRP and SOL-linked products.

He Called It

Balchunas and Nate Geraci, president of the ETF Store, previously predicted that a Dogecoin ETF filing was likely under the new administration. However, experts saw challenges due to the token’s origins as a meme coin and its highly concentrated holdings.

While some analysts are optimistic about DOGE’s potential, others believe Wall Street prefers more established assets like Solana.

Dogecoin is closely associated with Elon Musk. Musk, currently leading the Department of Government Efficiency (DOGE), has repeatedly endorsed the memecoin. On Tuesday, the department dropped its official website with Doge’s logo.

However, there is no connection between the department and the cryptocurrency project.

Musk’s endorsement motivated Valour, DeFi Technologies’ digital asset subsidiary, to launch its Dogecoin ETP in the Nordics.

“The growing popularity of Dogecoin, bolstered by influential figures like Elon Musk, highlights our commitment to delivering innovative and diversified investment opportunities,” Valour said in its debut announcement last November.

Driving Markets

Analysts believe that the incoming SEC leadership could lead to a more favorable environment for crypto ETFs, potentially resulting in quicker approvals.

ETF analysts see Litecoin ETF as the most likely to debut first under the Trump administration as Litecoin (LTC) is seen by the CFTC as a commodity.

Canary Capital is the only asset manager to file for the Litecoin ETF. The firm recently submitted a 19b-4 form to the SEC, indicating that the agency had actively engaged with the firm on its proposed product.

Unlike Litecoin (LTC), Solana and XRP ETFs may face delays due to the SEC’s classification of these cryptocurrencies as securities in lawsuits against Binance and Coinbase. Resolution of these cases is needed to clarify their legal status.

The SEC on Tuesday announced the establishment of a crypto task force led by Commissioner Hester Peirce and SEC acting Chair Mark Uyeda. The initiative will prioritize proactive regulation with clear legal standards and practical registration pathways, departing from the SEC’s previous enforcement-centric approach.

“The newly established crypto task force, led by Commissioner Hester Peirce, could accelerate the approval of a broader range of crypto ETFs, including SOL, XRP, LTC, DOT, and DOGE,” 21Shares’ crypto research strategist Matt Mena said.