In a groundbreaking move for the cryptocurrency sector, 21Shares, a prominent digital asset manager, has filed an initial proposal with the US Securities and Exchange Commission (SEC) to launch a spot Dogecoin ETF. Following the footsteps of industry rivals like Bitwise and Grayscale, this ETF aims to track the price movements of the popular memecoin, Dogecoin (DOGE).
According to the firm’s Form S-1 registration statement released on April 9, 21Shares has partnered with the Dogecoin Foundation’s marketing arm, House of Doge, to promote the fund effectively. The name “House of Doge” indicates the playful yet robust nature of Dogecoin’s community and its ongoing drive towards mainstream financial adoption.
Coinbase Custody has been proposed as the custodian for the Dogecoin ETF, although specific details regarding fees, ticker symbols, and the stock exchange for listing are yet to be disclosed. Furthermore, 21Shares must submit a 19b-4 filing to ensure regulatory approval from the SEC before launching the fund. As it stands, DOGE boasts a market capitalization of approximately $24.2 billion, ranking it as the eighth-largest cryptocurrency.
21Shares’ latest filing for a Dogecoin ETF continues its endeavor to diversify its crypto ETF offerings, which already include spot ETFs for Bitcoin (BTC) and Ethereum (ETH). The company also recently sought approval for a Polkadot (DOT) ETF and has previously filed for a XRP ETF.
Bloomberg ETF analysts have pointed out that the recent surge in ETF filings can be dubbed the “spaghetti cannon approach.” This approach sees issuers experimenting with various products to gauge which ones the SEC is likely to approve. In fact, there’s currently a 75% chance projected by analysts at Bloomberg that a spot Dogecoin ETF could gain SEC approval this year. Betting markets also reflect optimism, with approval odds sitting at approximately 64%.
Additionally, 21Shares is expanding its reach in Europe by collaborating with House of Doge to launch a fully backed Dogecoin exchange-traded product (ETP) on Switzerland’s SIX Swiss Exchange. This product will operate under the ticker “DOGE,” and it will feature a management fee of 2.5%.
Duncan Moir, president of 21Shares, recognized the cultural significance of Dogecoin, stating, “Dogecoin has become more than a cryptocurrency; it represents a cultural and financial movement that continues to drive mainstream adoption.” This perspective highlights the importance of understanding cryptocurrencies beyond their monetary value and recognizing their position in popular culture and financial ecosystems.
As the landscape of digital assets evolves, the introduction of a Dogecoin ETF offers investors a regulated means to engage with this dynamic memecoin, tapping into both the financial and cultural trends that Dogecoin has come to represent.
