The march toward institutionalizing meme coins took a significant leap forward as NYSE Arca submitted a rule change proposal to list the Bitwise Dogecoin ETF. If approved, this move could redefine the landscape for Dogecoin (DOGE), expanding its accessibility to institutional and retail investors alike.
On March 3, NYSE Arca, a subsidiary of the New York Stock Exchange, filed a 19b-4 application seeking regulatory approval to list the Bitwise Dogecoin ETF. This fund, managed by Bitwise Asset Management, offers direct exposure to Dogecoin in a regulated framework, marking a critical milestone for the crypto market’s evolution.
Unlike conventional ETFs, the Bitwise Dogecoin ETF operates on cash creations and redemptions, meaning investors will not be able to contribute or receive DOGE directly. Coinbase has been designated as the Dogecoin custodian, while the Bank of New York Mellon will handle cash custody, administration, and transfer agency functions.
This filing follows Bitwise’s S-1 registration submission to the U.S. Securities and Exchange Commission (SEC) in late January. If greenlit, it would be one of the first U.S.-listed memecoin ETFs, setting the stage for institutional capital influx into the Dogecoin ecosystem.
Dogecoin Drops Despite Filing
Despite the landmark filing, Dogecoin’s price failed to rally, plummeting over 15% in a single day to trade at $0.19. The drop aligns with a broader crypto market sell-off, erasing gains spurred by Donald Trump’s March 2 crypto reserve announcement. This stark contrast highlights the ongoing volatility in the digital asset space, even in the face of major regulatory advancements.
Dogecoin’s regulatory journey is far from isolated. On February 13, the SEC formally acknowledged Grayscale’s application for a Dogecoin Trust, triggering a review period that could extend until mid-October. This suggests that more meme-based investment products could soon enter the market, pending regulatory approval.
Meanwhile, the Nasdaq is also making moves in the digital asset ETF space. On March 3, it filed a similar rule change proposal with the SEC to list and trade shares of the Grayscale Hedera Trust, which tracks the price of HBAR, Hedera Network’s native token. This follows Canary Capital’s Hedera ETF application in late February, signaling growing institutional interest beyond just Bitcoin and Ethereum.
A Wave of Altcoin ETFs on the Horizon?
The regulatory shift towards crypto-friendly policies has triggered a flood of altcoin ETF applications in the U.S. Major issuers are now seeking approval for funds tracking Cardano (ADA), Solana (SOL), Polkadot (DOT), Litecoin (LTC), and XRP (XRP). With institutional interest surging, the SEC’s stance on these applications could set the tone for a new era of regulated crypto investment.
What’s Next for Dogecoin and Meme Coin ETFs?
While the SEC’s decision on the Bitwise Dogecoin ETF remains uncertain, this filing is a bold step toward legitimizing meme coins in institutional portfolios. If approved, it could pave the way for broader acceptance of DOGE as a serious financial asset, shifting it from internet meme status to a regulated, tradable investment vehicle.
For now, market participants await the SEC’s response, which could shape the future of crypto ETFs beyond just Bitcoin and Ethereum. Will 2024 be the year meme coins finally earn their institutional stripes? Investors and crypto enthusiasts alike are watching closely.
