Bitwise Files S-1 Form for a Spot Dogecoin (DOGE) ETF

Basically, filing an S-1 is the first step in a multi-pronged process with the SEC before a new ETF goes live in the market.

Bitwise, a leading cryptocurrency asset manager, has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for a spot Dogecoin (CRYPTO: DOGE) exchange-traded fund (ETF).

The asset management firm filed the form with the SEC on Tuesday, calling the fund the Bitwise Dogecoin ETF. An S-1 is an SEC form that the Wall Street regulator requires for new securities that U.S.-based companies want to issue.

Filing an S-1 is the first of several steps with the SEC before a new ETF goes live in the market.

Bitwise Took First Step Last Week

Bitwise took the first of several steps toward issuing a crypto ETF last week, when it filed an entity with the State of Delaware for a potential Dogecoin ETF.

Matt Hougan, Bitwise's chief investment officer, told the Financial Times after the Delaware filing that the asset manager has been monitoring the top meme coin's movements.

"The reality is that there are a lot of people that want to invest in Dogecoin. It's the sixth-largest crypto asset in the world by market cap and it trades over $1bn a day," Hougan said.

"We don't think all cryptocurrencies are suitable for ETFs. There are corners of the crypto market that are not liquid enough, that are subject to manipulation and are subject to insider control that are not suitable for an ETP (exchange-traded product)."

Dogecoin is the sixth-largest cryptocurrency by market cap and is recognized as the first meme token. It was created in 2013 by software engineers Billy Markus and Jackson Palmer, who set out to create a fun and lighthearted cryptocurrency that would appeal to a broad audience.

The meme coin is up 0.8% over the past 24 hours. It was trading at $0.14 by 6:10 a.m. ET on Wednesday.

Bitwise Highlights DOGE's Key Factors

In its SEC S-1 filing, Bitwise highlighted the following key factors that make the DOGE meme coin stand out from other crypto assets:

"DOGE is a decentralized cryptocurrency that was created in 2013 and is widely recognized as the first-ever meme token," the SEC filing states.

"The meme coin is created through a process known as Proof-of-Work, which involves powerful computers solving complex mathematical equations to validate transactions and generate new blocks in the blockchain."

"DOGE is known for its fast transaction speeds and low fees, making it a suitable option for everyday payments and transactions."

"The meme coin has a vast and engaged online community that contributes to its popularity and liquidity."

"DOGE is among the top-performing cryptocurrencies in the market, ranking sixth by market capitalization with a total market cap of over $48 billion."

"The meme coin trades over $1 billion in daily volume, making it one of the most liquid crypto assets in the world."

"DOGE is listed on several major cryptocurrency exchanges and is also available for purchase through various brokers and platforms."

"The meme coin is subject to price fluctuations and market conditions, and its value can change rapidly."

"Investors should carefully consider their investment goals, risk tolerance, and financial situation before investing in any cryptocurrency or ETF."

"ETFs are a type of investment fund that tracks a specific index, sector, commodity, or other asset and trades on exchanges like stocks."

"ETFs offer several benefits, including lower costs, diversification, and professional management compared to investing directly in individual assets."

"Several asset managers and companies have filed for crypto ETFs in recent months, and the SEC is yet to approve any of these applications."

"There are high hopes and anticipation among crypto enthusiasts for the approval of a DOGE ETF this year."

Balchunas: Bitwise Filing First Of Its Kind

Bloomberg senior ETF analyst Eric Balchunas noted that Bitwise's filing is the first of its kind in terms of filings under the "'33 Act (a la $IBIT)."

"REX Shares filed for a Dogecoin ETF but it is under the 1940 Act, and that isn't the same true blue physically backed structure," Balchunas explained.

The Securities Act of 1993, often called the '33 Act, is historical legislation that marked the official start of federal securities regulation in the U.S, whereas the Securities Act of 1940 is legislation that prevents fraudulent activities around wealth management, investing, and other similar factors of the financial realm.

Chances Of A DOGE ETF Increase To 57%

Following news of Bitwise's S-1 filing, cryptocurrency bettors on decentralized market prediction platform Polymarket raised the chances of a Dogecoin ETF being approved sometime this year to 0.57, up from 0.26 earlier this month.