Bitwise Files for Dogecoin ETF

Bitwise Asset Management is one step closer to launching its Dogecoin ETF. NYSE Arca has initiated the formal process for the listing and trading of the Bitwise Dogecoin ETF by filing a 19b-4 application.

Structure and Operation of the Dogecoin ETF

According to a March 3 filing, if the proposed rule change is approved, the Bitwise Dogecoin ETF will be traded on NYSE Arca, a subsidiary of the New York Stock Exchange (NYSE). This ETF will allow investors to invest directly in Dogecoin.

Here are the details of the ETF:

• It will be governed by a trust structure established under Delaware law.
• Bitwise will be the fund’s main manager.
• The aim of the fund is to track Dogecoin’s price movements and cover operational costs.
• It will be based on a pricing benchmark provided by CF Benchmarks Ltd.
• The fund will hold Dogecoin directly; no derivatives will be used.

The ETF’s management fee will also be paid in Dogecoin. In addition, assets received involuntarily in situations such as hard forks or airdrops will not be considered under the fund’s management agreement.

Highlights of the Fund’s Operation

• The ETF will only create and redeem with cash. Therefore, investors will not be able to deposit and withdraw Dogecoin directly.
• Coinbase will act as the fund’s Dogecoin custodian.
• Bank of New York Mellon will handle cash custody, administration and transfers.

Bitwise made its initial filing for the Dogecoin ETF at the end of January and filed an S-1 application with the SEC on January 28.

Competition heats up for Dogecoin ETF

Bitwise is not the only Dogecoin ETF applicant. Rex Shares, Osprey Funds and Grayscale have also applied for similar products. The SEC officially took Grayscale’s Dogecoin ETF application under consideration on February 13.

In addition to the Dogecoin ETF, Bitwise has also launched an Aptos (APT) based ETF. If the February 27 application to the Delaware State Department is approved, the first Aptos ETF in the US could be launched.

It is not yet clear how the SEC will rule on Dogecoin ETFs. However, the increase in applications shows that memecoins are gaining more and more ground in the world of financial products.

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