Dogecoin ETF faces SEC review amid growing market optimism

The SEC reviews Bitwise's Dogecoin ETF filing, with growing market optimism, while DOGE's price faces a decline amidst broader market volatility.

NYSE Arca has filed a 19b-4 with the SEC, seeking approval to list and trade Bitwise’s Dogecoin (DOGE) exchange-traded fund (ETF). This filing follows Bitwise’s earlier submission of an S-1 to the SEC. According to the filing, Coinbase Custody will manage the ETF's Dogecoin holdings, while the Bank of New York Mellon will oversee the cash assets and handle administration tasks.

The filing proposes that the ETF will hold Dogecoin as its primary asset, with its Net Asset Value (NAV) calculated daily using the CF Dogecoin-Dollar Settlement Price, an industry-standard pricing benchmark. This would allow the ETF to closely track the market value of Dogecoin, offering investors an opportunity to trade the meme cryptocurrency on traditional markets.

Besides Bitwise, other major firms like Grayscale and Rex Shares have also filed for a Dogecoin ETF, with Grayscale’s application further along in the SEC's review process. Grayscale’s filing has already been acknowledged by the SEC, making it a strong competitor in this space.

 Market sentiment surrounding the approval of a Dogecoin ETF has been increasingly positive. According to Polymarket, the probability of approval has risen to 67%, up from 55% just a day before. Bloomberg analysts have also forecast a 75% chance of approval in 2025. This rising confidence reflects the market’s belief that a regulated Dogecoin ETF may soon become a reality, although approval is still not guaranteed.

This potential ETF marks a turning point for Dogecoin, which began as a joke in 2013 but has since grown into the largest meme cryptocurrency, with a market cap surpassing $28 billion. Despite this, DOGE’s price has recently fallen by nearly 16%, with trading volume showing a marked decline of 17%. This drop in price and volume underscores broader market challenges, despite the increasing optimism around the ETF.

Market optimism is increasing due to the growing chance of a Dogecoin ETF approval in 2025. Grayscale’s lead in the ETF approval process signals significant regulatory interest. However, DOGE’s price drop highlights the volatility of meme coins despite positive regulatory news.