The quest for a Dogecoin ETF product is growing, with 21Shares now the latest to join the trend with its latest S-1 filing with the US SEC. If approved, many believe this ETF can fuel a boost for DOGE market value
The race to launch a Dogecoin ETF in the U.S. has intensified as another asset manager has signaled interest. 21Shares, the Zurich-based asset manager, is the latest to file an application with the Securities and Exchange Commission (SEC).
Dogecoin ETF and Exposure to Price Action
Per the S-1 filing submitted to the SEC, 21Shares characterized the DOGE ETF as a passive investment. This implies that the product is not seeking to generate returns for investors through derivatives or leverages. Rather, the value of the ETF held by 21Share will be pegged to the actual DOGE pricing index.
Although 21Shares sponsors the DOGE ETF, Coinbase Custody Trust Company will hold Dogecoin in custody for the fund.
When filing the application, 21Shares did not reveal on what exchange the DOGE ETF would list or trade. When a decision has been reached, the exchange will file a form 19b-4 application with the SEC.
That move would signal that the regulatory body can start considering the application with a defined approval timeline.
Other notable details currently missing from the application include the ticker, trustee, and management fee 21Shares intends to charge. For the interest of potential investors, all these need to be explicitly stated in the prospectus.
Debate Over DOGE’s Role in Institutional Finance
Other asset managers that have filed for DOGE ETFs include 21Shares, Grayscale, and Bitwise. The duo is seeking to launch its Dogecoin ETF on NYSE Arca. In February, the SEC acknowledged Grayscale’s filing.
Although the acknowledgment does not necessarily translate into approval, many consider it a notable development. It is seen as a shift from the disposition of the regulatory body under the leadership of its former chair, Gary Gensler.
Meanwhile, the odds of the SEC approving the spot Dogecoin ETF have soared to 56% on Polymarket, the popular betting site. Ali Martinez, a popular analyst, believes a Dogecoin ETF could positively impact the price of DOGE.
Despite these filings, a segment of the crypto community still has reservations about pursuing a spot Dogecoin ETF.
These groups believe that the memecoin, which started as a joke, has no place in the investment world. As such, it should not gain institutional attention. With the filings, the SEC must decide if DOGE is due for institutional attention.
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