NYSE Arca has submitted a proposed rule change to the U.S. Securities and Exchange Commission (SEC) to list and trade shares of the Bitwise Dogecoin Exchange-Traded Fund (ETF). The filing, submitted on March 3 as a 19b-4 form, aims to introduce the first U.S.-listed memecoin ETF, offering institutional and retail investors regulated exposure to Dogecoin.
Coinbase and BNY Mellon to Handle Custody
According to the filing, Coinbase will act as the custodian for Dogecoin holdings, while the Bank of New York Mellon will oversee cash custody, administration, and transfer agency functions. The ETF will operate using cash creations and redemptions, meaning investors will not directly handle Dogecoin when buying or selling shares.
Despite the milestone filing, Dogecoin’s price showed no positive reaction. Instead, the memecoin plummeted by over 15% on the day, trading at $0.19. The decline follows a broader crypto market downturn that erased gains triggered by former U.S. President Donald Trump’s announcement of a national crypto reserve on March 2.
SEC Reviewing Grayscale’s Dogecoin Trust
Meanwhile, the SEC is also reviewing Grayscale’s application for the Grayscale Dogecoin Trust. On February 13, the regulator acknowledged Grayscale’s filings, officially starting the review process. A final decision on the product is expected around mid-October.
Alongside the Dogecoin ETF developments, Nasdaq has also filed a proposed rule change with the SEC to list and trade shares of the Grayscale Hedera Trust, which tracks the price of HBAR, the native token of the Hedera Network. This follows a similar filing in late February to list a Hedera-focused ETF from Canary Capital.
Surge in Altcoin ETF Applications
The push for crypto ETFs is intensifying, with multiple issuers applying for funds that track altcoins such as Cardano, Solana, Polkadot, Litecoin, and XRP. This surge follows a shift in the SEC’s stance towards digital assets, signaling a more crypto-friendly regulatory approach under the current administration.
