Key Highlights:
- Bitwise has modified its submission for a dogecoin ETF, indicating potential approval from the SEC.
- This updated filing includes provisions for in-kind redemptions, enabling the direct exchange of DOGE tokens and ETF shares.
- Other companies like 21Shares and Grayscale have also expressed interest in dogecoin-related financial instruments, reflecting a rising trend in the market.
A spot Dogecoin ETF may soon become a reality. ETF provider Bitwise has revised its regulatory filing for its dogecoin ETF on Thursday, hinting at a growing likelihood of approval, as per an industry expert.
Shiba inu dog (Shutterstock)
“Bitwise has filed amended S-1s for their spot dogecoin ETF and their spot aptos ETFs,” wrote Eric Balchunas from Bloomberg Intelligence. “Good signs as it indicates SEC engagement, and tracks with other spot approvals.”
Furthermore, the modification of the dogecoin ETF filing to incorporate in-kind redemptions allows broker-dealers to trade shares directly for DOGE tokens, or the other way around.
Current regulations require U.S.-based crypto ETFs to exchange tokens for cash, then for shares, which instigates a tax event. With this new setup, that hurdle could be circumvented, making ETF trades more efficient.
This news, however, hasn’t positively impacted dogecoin’s market price, which has recently dropped by approximately 2%, currently valued at $0.16. Other entities, such as 21Shares and Grayscale, have lodged their own proposals for dogecoin ETFs, signifying escalating interest in the sector.
