Bitwise Asset Management has taken a significant step towards potentially launching its first Dogecoin-focused exchange-traded fund (ETF). The firm recently registered a Delaware statutory trust with Delaware’s Division of Corporations, a common initial step in the process of introducing new financial products.
Following this development, the value of Dogecoin (DOGE) experienced a slight decline of around 5% in the last 24 hours, trading at $0.35 at the time of writing. This drop led to approximately $11 million in trader liquidations, according to data from Coinglass. In addition to Bitwise, Rex Shares also filed for a series of crypto ETFs, including those centered around DOGE, TRUMP, and BONK.
While Bitwise has not officially confirmed the purpose of the trust registration, industry analysts believe it signals the firm’s intention to launch a Dogecoin ETF. This move is seen as a preliminary step in the process of applying for approval from the US Securities and Exchange Commission (SEC).
Eric Balchunas, a senior ETF analyst at Bloomberg, described Bitwise’s filing as significant and hinted at a potential upcoming application to the SEC. Another Bloomberg ETF analyst, James Seyffart, clarified on social media that the filing was not yet a formal submission to the SEC.
Dogecoin, originally created as a meme, has evolved into a major digital asset with a market capitalization exceeding $50 billion. However, critics argue that meme-based coins like DOGE pose significant risks due to their speculative nature, leading to concerns about their suitability for institutional investors.
Data from Polymarket suggests a 48% chance of the SEC approving a Dogecoin ETF in 2025. This development comes at a time of growing institutional interest in crypto-related ETFs, with 33 such products currently under review by the SEC. Balchunas believes that the number of applications could increase further in the near future, reflecting a rising demand for regulated investment options in the crypto market.
Despite the surge in ETF filings, Balchunas predicts that spot Bitcoin ETFs will remain dominant in the market. These funds have proven popular, attracting approximately $40 billion in inflows and managing over $120 billion in assets since their launch. The analyst emphasized that even if numerous crypto ETFs are approved, the majority of investment is likely to flow towards spot Bitcoin ETFs.
In conclusion, Bitwise’s move to register a Dogecoin-focused trust signals a potential entry into the ETF market for the popular meme coin. As regulatory approval processes unfold, the crypto industry could see a significant influx of new investment opportunities through ETFs, with spot Bitcoin funds expected to maintain their lead in attracting capital.