The NYSE Arca has recently submitted a proposal to list the shares of the Bitwise Dogecoin ETF, a fund that could offer direct exposure to Dogecoin, the popular memecoin.
This initiative, if approved by the Securities and Exchange Commission (SEC), would represent a significant step forward for institutional and retail investors in the United States. The ETF, in fact, would allow regulated access to Dogecoin, a digital currency that has seen a growing interest in recent years.
Summary
NYSE: Coinbase as custodian of the Bitwise Dogecoin ETF
The ETF proposed by Bitwise Asset Management uses a system of cash creations and redemptions. This means that investors will not directly manage Dogecoin, but they can still benefit from its value fluctuations.
- Coinbase has been chosen as custodian for DOGE.
- The Bank of New York Mellon will handle the custody and cash administration functions.
This approach ensures a level of security and reliability, crucial for attracting more traditional investors.
The approval process and market implications
On March 3, NYSE Arca submitted the form 19b-4 to the SEC. This form, if approved, will allow the exchange to list the ETF.
Bitwise has already submitted an S-1 registration form in January, demonstrating a strong commitment to launch this financial product. If approved, the Bitwise Dogecoin ETF will be one of the first memecoin ETFs in the United States, setting an important precedent for other similar products in the future.
Despite the initial enthusiasm, the prices of Dogecoin did not react positively to the news of the presentation. On the contrary, the value of the memecoin fell by over 15%, in a context of a wider crypto market, which saw a general decline in prices.
Competition and other ETF initiatives
In parallel with the proposta di Bitwise, the Nasdaq has submitted a similar proposal for the Grayscale Hedera Trust, which will track the price of HBAR, the native token of the Hedera Network.
“`htmlThis shows a growing interest in creating regulated financial products linked to cryptocurrencies, reflecting a change in the SEC’s attitude towards cryptocurrencies. In fact, there have been numerous requests for ETFs on altcoins like Cardano, Solana, Polkadot, Litecoin, and XRP.
“`Reflections on the future of the crypto market
The proposal of the Bitwise Dogecoin ETF represents a significant step towards the integration of cryptocurrencies into traditional financial markets. If approved, it could pave the way for further developments in the sector of regulated cryptocurrencies.
However, it remains to be seen how the market will react and if investors will embrace this new opportunity. The crucial question is: is the cryptocurrency market ready for greater regulation and integration into traditional financial markets?
