Nasdaq Seeks SEC Approval for Dogecoin ETF
Nasdaq has taken a significant step towards offering investors exposure to Dogecoin with the filing of a 19b-4 form with the US Securities and Exchange Commission (SEC) for a new 21Shares Spot Dogecoin (DOGE) Exchange-Traded Fund (ETF). This move, as detailed in an April 29 filing, aims to provide investors with passive exposure to Dogecoin’s price without the need for direct involvement in speculative trading activities such as leverage, derivatives, or other financial arrangements.
The proposed ETF would enable investors to indirectly access the Dogecoin market through a traditional brokerage account, eliminating potential barriers to entry or risks associated with holding or transferring Dogecoin directly or acquiring it from a Dogecoin spot market. Coinbase has been selected to serve as the custodian of the 21Shares DOGE ETF assets, while the pricing benchmark would be provided by the CF DOGE-Dollar US Settlement Price Index.
Nasdaq emphasized its ability to monitor trading activity and prevent manipulation by highlighting its membership in the Intermarket Surveillance Group (ISG). This membership allows Nasdaq access to real-time information sharing with other regulated markets, including Coinbase Derivatives, enabling the surveillance program to detect patterns for price and volume movements, as well as post-trade surveillance patterns like spoofing, marking the close, pinging, and phishing.
The proposed ETF signifies a significant development for Dogecoin, which initially started as a joke in 2013 but has since evolved into a serious digital asset. Currently, Dogecoin holds the eighth-largest position in the digital asset market, boasting a market cap of approximately $26.5 billion.
In addition to 21Shares, other prominent players such as Grayscale and Bitwise have also submitted applications for similar spot Dogecoin ETFs, underscoring the industry’s growing confidence in the potential approval of a broader range of crypto investment options beyond Bitcoin and Ethereum by the SEC.
Despite the optimism surrounding the potential approval of a Dogecoin ETF, predictions on the decentralized platform Polymarket suggest a 59% chance of SEC approval before the end of the year. This uncertainty reflects the ongoing dialogue between regulators and industry players as they navigate the evolving landscape of digital asset investments.
As the crypto market continues to evolve, the prospect of a Dogecoin ETF approval represents a significant milestone that could open new avenues for investors seeking exposure to the burgeoning digital asset space.