Billion-dollar asset manager Bitwise has officially communicated its intent to list a spot Dogecoin ETF with the U.S. Securities and Exchange Commission (SEC).
On Tuesday, Bitwise Investment Advisers filed a Form S-1 registration statement with the SEC to list the Bitwise Dogecoin ETF.
For context, last Wednesday, the asset manager filed a Delaware registration for a DOGE ETF, and now it is following through with the SEC.
In a statement, Bitwise CIO Matt Hougan highlighted a significant demand for Dogecoin investments. “The truth is that many people want to invest in DOGE,” Hougan said.
Furthermore, he pointed out that Dogecoin is the sixth-largest crypto asset, with an impressive volume exceeding $2 billion.
Bitwise Dogecoin ETF Strategy and Structure
Notably, this proposed ETF aims to provide investors with exposure to Dogecoin without the complexities of directly owning DOGE. The ETF will issue common shares of beneficial interest listed on a major exchange under a yet-to-be-revealed ticker symbol.
The Bitwise Dogecoin ETF will hold Dogecoin and set its Net Asset Value (NAV) based on the CF Dogecoin-Dollar Settlement Price, a pricing benchmark calculated by CF Benchmarks Ltd.
The Trust will not actively trade or manage the Dogecoin holdings but will passively track its value. Notably, the ETF will operate through a unique structure where shares are issued and redeemed in blocks of 10,000 shares, known as “Baskets.” This will allow investors to buy or sell based on the Dogecoin held by the Trust.
Meanwhile, the Trust, managed by Bitwise Investment Advisers, will charge a unitary management fee. Investors will be able to access Dogecoin through a traditional brokerage account, bypassing the complexities and risks of directly owning the digital asset.
The S-1 filing also pointed out that while the ETF is a more accessible way to gain exposure, it comes with risks similar to investing directly in Dogecoin, such as volatility in the digital asset market.
Dogecoin Price Action Amid ETF Filing
Despite the news of an ETF that directly invests in Dogecoin, the price performance of DOGE has not reflected the weight of the development. Specifically, Dogecoin is trading in the red today, with a price of $0.3319. Its weekly performance shows a 10% loss.
Notably, Bitwise is not the only ETF issuer seeking to launch a Dogecoin ETF. Last week, two asset managers submitted applications to the SEC for multiple meme coin ETFs, including DOGE.
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