Bitwise Eyes November Launch for Spot Dogecoin ETF Amid SEC Approval Countdown

Bitwise is set to make a significant splash in the cryptocurrency market as it prepares to introduce a spot Dogecoin Exchange-Traded Fund (ETF). The asset manager has recently amended its application, incorporating details such as the ticker, fees, and other crucial elements for regulatory approval. With the U.S. Securities and Exchange Commission (SEC) setting the deadline for a decision by November 12, the financial world watches eagerly to see if Bitwise’s Dogecoin ETF will be greenlit next week or automatically proceed for listing later this month.

Anticipation Surrounds Bitwise’s Spot Dogecoin ETF

In an attempt to provide investors with direct exposure to Dogecoin, Bitwise has submitted its fourth amendment for the spot Dogecoin ETF to the SEC, as outlined in an S-1 filing. This strategic move aims to mirror the live pricing of Dogecoin, utilizing the CF Dogecoin-Dollar US Settlement Price Index as a benchmark. The application specifies the ticker symbol BWOW and outlines plans to list on NYSE Arca by the end of November. Coinbase Custody has been designated to secure the cryptocurrency holdings, while BNY Mellon will handle cash custody services for the ETF.

Bitwise Asset Management is committed as the seed capital investor by purchasing approximately $195 in shares on November 3. This involves an initial transaction of eight shares, each valued at $25. The firm has also declared an intention to acquire initial shares worth around $2.6 million, laying a substantial financial foundation for the ETF’s launch.

Fee Structure and Strategic Timing

As the asset manager outlines its proposals, a management fee of 0.35% has been established for the ETF, alongside a temporary fee waiver benefiting initial investors. This fee waiver will apply to the first $520 million in Dogecoin holdings from the listing date, enhancing the ETF’s appeal among investors seeking cost-effective exposure to cryptocurrency assets.

Renowned Bloomberg ETF analyst Eric Balchunas explains that Bitwise is employing the 8-A strategy, indicating an automatic transition into effect in approximately 21 days, barring regulatory complications. If governmental procedures conclude without disruptions, the SEC is scheduled to finalize its stance by the November 12 deadline. Upon approval, the Dogecoin ETF is projected to start trading promptly, potentially by next week.

Earlier reports highlighted similar actions by other firms, such as 21Shares, which revised its Dogecoin ETF application under the ticker TDOG. This exemplifies an industry trend of gearing up for broader crypto ETF adoption, with 21Shares planning its ETF listing on the Nasdaq exchange.

Market Reactions and DOGE Price Movements

News of Bitwise’s ETF steps immediately triggered market reactions, with Dogecoin’s price rising nearly 1.35%. As traders positioned themselves in anticipation, DOGE maintained a current trading price near $0.167. Within the past day, fluctuations ranged from $0.1587 to $0.1672, reflecting the heightened interest.

However, trading volume experienced a slight decline by approximately 2.3% to near $1.91 billion over the past day, reflecting cautious market sentiment amidst broader market instability fears. Despite the muted volume, derivative markets showed a surge in DOGE buying, indicating traders are bracing for potential market shifts.

Data from Coinglass underscored this trend with a notable 2.4% increase in total DOGE futures open interest, reaching close to $1.41 billion within a four-hour window. This uptick suggests market participants are positioning themselves for movements either driven by ETF approval or broader crypto market developments.

Closing Insights

As Bitwise advances towards the imminent launch of its spot Dogecoin ETF, the implications for the cryptocurrency market are significant. By formalizing the ETF structure through detailed regulatory filings and securing pivotal partnerships for custody services, Bitwise underscores its commitment to mainstreaming cryptocurrency investments. The evolution of the Dogecoin ETF landscape is set to offer new opportunities for both institutional and retail investors, redefining how digital currencies are integrated into traditional financial portfolios. The coming days are pivotal, with the decision from the SEC poised to set the trajectory for cryptocurrency ETFs going forward.