Bitwise, a highly-regarded cryptocurrency asset management company, has recently submitted the necessary documents to initiate a dogecoin (DOGE)-linked exchange-traded fund (ETF), as indicated by a recent filing with the United States Securities and Exchange Commission (SEC).
The document, recognized as an S-1, is a mandatory requirement for organizations intending to introduce a new security for listing on a public stock exchange.
Earlier this month, Rex Shares and Osprey Funds, two prominent investment management firms, submitted applications for a range of cryptocurrency ETFs, incorporating dogecoin along with several other popular memecoins.
However, Bitwise’s filing is distinct as it falls under the ’33 Act, unlike the 40 Act which was utilized by Rex and Osprey, as highlighted by Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence.
ETFs filed under the ’33 Act are commonly associated with niche, commodity-based ETFs, whereas filing under the ’40 Act offers more robust investor protection due to additional SEC rules that the issuer must adhere to. For instance, the 40 Act imposes stricter fiduciary supervision and governance, restrains leverage and short-selling, among other regulations.
Bitwise has multiple crypto ETFs under their management and several applications in progress, including one for an XRP (XRP) ETF.
While the submission of the S-1 document marks the beginning of the ETF launch process, the 19b-4 filing is more critical. It signifies a necessary rule change at the stock exchange where the investment is to be listed and imposes a strict deadline on the SEC.
Under the management of Gray Gensler’s SEC, which imposed significant challenges on the launch of a bitcoin spot ETF, memecoin ETFs were almost unfathomable. However, with the ascension of President Donald Trump, the likelihood of such funds has increased significantly.
Trump has not only pledged favorable policies for cryptocurrencies, but the launch of his own memecoins, TRUMP and MELANIA, indicates his personal enthusiasm for memecoins. This development has been welcomed by those interested in the investment and cryptocurrency sector.
