Swiss crypto asset manager 21Shares has filed paperwork with the SEC to develop a spot Dogecoin (DOGE) exchange-traded fund (ETF) in the United States. This move puts them in competition with companies like Grayscale and Bitwise, which have submitted similar product applications.
The SEC received 21Shares' spot DOGE ETF filing for the first time on Thursday. The proposed fund aims to hold physical DOGE tokens, which 21Shares plans to obtain through a partnership with Coinbase, a major US cryptocurrency exchange. Although the initial regulatory submission has been made, the company has not yet disclosed details such as the ETF’s management fee, ticker symbol, or stock exchange listing. To begin an application with the SEC, an exchange must submit a 19b-4 document to initiate the review process and establish the timeline for regulatory decisions.
In its filing, 21Shares declared an alliance with the Dogecoin Foundation's corporate department, the House of Doge. The newly formed partnership will boost marketing the fund's new DOGE ETF. The participation of the House of Doge will give the fund increased community outreach and greater market penetration.
The SEC's product approval decision will result in 21Shares becoming the initial ETF to trace a meme coin. Since its creation, based on the cryptocurrency boom, Dogecoin has evolved to join the major cryptocurrency market participants. DOGE has grown into more than a virtual currency since it generated new names, including the Department of Government Efficiency (DOGE), which Elon Musk leads.
Dogecoin maintains a total market worth of $23 billion, making it the ninth-largest digital currency available globally. Retail investors and institutional players have shown increasing interest in DOGE, making the market demand for a regulated investment tool more apparent.
The 21Shares application enhances the competitive landscape of cryptocurrency fund management groups aiming to launch spot Dogecoin ETFs in U.S. markets. Two financial institutions, Grayscale and Bitwise, have submitted applications to offer investors exposure to Dogecoin through standard market platforms.
Managers who want to operate within SEC guidelines must adjust their strategies, as Dogecoin differs from conventional asset structures. When the SEC approves this regulation, it will mark a significant milestone for the crypto market, as it will allow ETF exposure to digital assets across a wider range.
Investors are closely monitoring SEC actions regarding crypto ETFs, as these will establish essential regulatory frameworks that impact new digital asset products, particularly those involving meme coins.