Bitwise Files to Launch Dogecoin ETF on NYSE Arca: A New Chapter for Memecoin Investing

On March 3, NYSE Arca, a subsidiary of the New York Stock Exchange, took a major step toward offering regulated access to Dogecoin (DOGE) by filing a proposed rule change to list and trade shares of the Bitwise Asset Management Dogecoin Exchange-Traded Fund (ETF). This move is part of the growing trend of memecoins gaining legitimacy in the financial market, with Dogecoin, one of the most well-known tokens, leading the charge.

If approved by the Securities and Exchange Commission (SEC), this would mark one of the first US-listed memecoin ETFs, enabling both institutional and retail investors to gain exposure to Dogecoin in a regulated manner, without the need to directly purchase the cryptocurrency.

The Bitwise Dogecoin ETF will allow investors to indirectly invest in Dogecoin through traditional financial channels. According to the filing, the ETF will use cash creations and redemptions, meaning that investors won’t be able to directly contribute or receive Dogecoin. Instead, Coinbase will act as the Dogecoin custodian, while the Bank of New York Mellon will handle functions such as cash custody, administration, and transfer agency.

This structure is in line with traditional ETFs, which typically deal with securities rather than directly holding cryptocurrencies. However, the direct exposure to Dogecoin’s price movement allows investors to benefit from the fluctuations in the value of the memecoin without having to engage with crypto exchanges or wallets.

What This Means for the Crypto Market

The approval of the Bitwise Dogecoin ETF would be a significant milestone for the crypto industry. Dogecoin, which started as a joke, has become one of the most traded and recognized cryptocurrencies globally. With this potential move to list an ETF for Dogecoin, the memecoin could further cement its place in the traditional financial markets.

This ETF would provide a regulated product for those looking to invest in Dogecoin but hesitant about directly holding the cryptocurrency. It would also serve as a bridge between the crypto world and the traditional investment world, paving the way for more widespread adoption of digital assets in established financial systems.

Despite the potential for the Bitwise Dogecoin ETF to open up new opportunities for investors, Dogecoin’s price did not react positively to the filing. On the day of the filing, Dogecoin dropped more than 15%, falling to $0.19. This decline occurred amid a broader crypto market rout, which wiped out gains made following the announcement of Donald Trump’s US crypto reserve on March 2.

This drop highlights the volatility that still persists within the crypto market, even as traditional financial institutions look to integrate more digital assets like Dogecoin.

Grayscale and Other Altcoin ETF Applications

The Bitwise Dogecoin ETF is not an isolated event. On February 13, the SEC acknowledged Grayscale’s filings for the Grayscale Dogecoin Trust, which will also offer exposure to Dogecoin. As with the Bitwise ETF, the Grayscale Trust would allow investors to gain indirect exposure to the memecoin through a regulated product. The SEC is expected to make a decision on this product by mid-October.

Additionally, Nasdaq filed a similar proposed rule change on March 3 to list and trade shares of the Grayscale Hedera Trust, which will track the price of HBAR, the native token of the Hedera Network. This filing is part of a broader trend of altcoin ETF applications, including those for Cardano (ADA), Solana (SOL), Polkadot (DOT), Litecoin (LTC), and XRP. The SEC’s pivot toward a more crypto-friendly approach under the Biden administration has sparked a surge in such filings, signaling a growing appetite for regulated products that track the performance of digital assets.

The proposed Bitwise Dogecoin ETF is just one of several developments marking a turning point in how digital assets, especially memecoins, are being integrated into mainstream financial products. As stablecoin regulations evolve and the SEC begins to greenlight more crypto-related products, Dogecoin’s potential as a tradable asset within traditional financial markets is becoming more apparent.

While Dogecoin’s price did not react positively to the filing in the short term, the long-term outlook for the Bitwise Dogecoin ETF could open the door to new opportunities for investors seeking regulated access to cryptocurrencies. As the market matures, we may soon see more memecoins and altcoins gaining recognition through such financial products, offering a new path for institutional and retail investors alike.