Crypto Asset Manager Bitwise Files Documents to Launch Dogecoin ETF
Filing Shows Bitwise Seeking to Issue New Security and List on Public Stock Exchange
Bitwise, a crypto asset manager, has uploaded documents to the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tied to the price of dogecoin (DOGE), a memecoin. The filing, an S-1 document, is a requirement for companies seeking to issue a new security and be listed on a public stock exchange.
The filing differs from earlier applications by Rex Shares and Osprey Funds, which filed paperwork for several crypto ETFs, including dogecoin, under the 40 Act. Bitwise, however, has filed under the ’33 Act, which is typically used for niche, commodity-based ETFs.
According to Bloomberg Intelligence senior ETF analyst Eric Balchunas, the 40 Act provides stronger investor protection as it requires the issuer to meet further SEC rules. These rules include limiting leverage and short-selling, as well as stricter fiduciary oversight and governance.
Bitwise’s Track Record and Upcoming Applications
Bitwise is the issuer of several crypto ETFs and has several applications pending, including one for an XRP (XRP) ETF. The company has established a track record in the crypto ETF space and has demonstrated its ability to navigate the regulatory environment.
The S-1 document is the first step in launching an ETF, but the more crucial filing is the 19b-4, which is required to signal a requisite rule change at the stock exchange seeking to list the investment and ties the SEC to a strict deadline.
A Shift in SEC Policy under New Administration?
The possibility of memecoin ETFs seemed unlikely under Gray Gensler’s SEC, which gave issuers a hard time launching a spot bitcoin ETF. However, the inauguration of President Donald Trump and his promises of crypto-friendly policies have led to a shift in the regulatory environment.
President Trump’s own memecoins, TRUMP and MELANIA, have also made it clear that the President is a fan of memecoins. This has led to speculation that the new administration may be more open to the idea of crypto ETFs.
Conclusion
Bitwise’s filing to launch a dogecoin ETF is an important development in the crypto ETF space. While the regulatory environment is still evolving, the possibility of memecoin ETFs becoming a reality seems more likely than ever.
FAQs
What is an S-1 document?
An S-1 document is a filing with the Securities and Exchange Commission (SEC) that is required for companies seeking to issue a new security and list on a public stock exchange.
What is the difference between the 33 Act and the 40 Act?
The 33 Act is typically used for niche, commodity-based ETFs, while the 40 Act provides stronger investor protection and requires the issuer to meet further SEC rules, including limiting leverage and short-selling.
What is a 19b-4 filing?
A 19b-4 filing is required to signal a requisite rule change at the stock exchange seeking to list the investment and ties the SEC to a strict deadline.
What is a memecoin ETF?
A memecoin ETF is an exchange-traded fund that tracks the price of a memecoin, such as dogecoin (DOGE). Memecoins are a type of cryptocurrency that have gained popularity online.
How has the regulatory environment changed under the new administration?
The inauguration of President Donald Trump and his promises of crypto-friendly policies have led to a shift in the regulatory environment, making it more likely that memecoin ETFs will be approved.
