In a big development for each the memecoin and the broader cryptocurrency landscape, Bitwise Asset Management has filed for a Dogecoin ETF within the state of Delaware.
This application marks a notable addition to the growing roster of exchange-traded products geared toward providing investors with latest avenues for cryptocurrency exposure.
How Trump’s Presidency Could Transform Crypto Regulations
The timing of the brand new Dogecoin ETF filing is especially relevant given the recent political landscape in the USA. With Donald Trump having taken office for a second term, there’s renewed optimism surrounding the regulatory environment for cryptocurrencies.
President Trump, who previously held the presidency from 2017 to 2021, has expressed intentions to create a more favorable climate for digital assets, contrasting sharply with the regulatory scrutiny that characterised the Biden administration.
Under former President Joe Biden, the US Securities and Exchange Commission (SEC), led by Gary Gensler, adopted a stringent approach to cryptocurrency regulation. This often resulted in a scarcity of clarity and an enforcement-heavy strategy that led to multiple lawsuits against key players within the digital asset space.
The regulatory landscape was marked by ambiguity, leaving many investors and firms uncertain about compliance and future opportunities. Nonetheless, President Trump’s administration has already begun making regulatory changes geared toward fostering cryptocurrency innovation.
Recent appointments to key regulatory agencies and the establishment of a latest crypto council inside the White House signal a shift in focus. Observers imagine these changes could pave the best way for more cryptocurrencies to realize access to investment vehicles like ETFs.
Bitwise Leads The Charge With Dogecoin ETF Application
The filing for the Dogecoin ETF can be inspired by the success of comparable investment products that debuted last 12 months, particularly those focused on Bitcoin (BTC) and Ethereum (ETH).
These ETFs have seen substantial uptake from institutional investors, validating the demand for cryptocurrency-based investment options.
Bitwise is positioning itself as a key player on this emerging market, following its application for a Dogecoin ETF with similar filings for XRP and Solana.
Other asset managers are also in search of approval for ETFs involving Litecoin (LTC), Hedera (HBAR), and even additional memecoins resembling TRUMP and BONK, as evidenced by recent applications from firms like REX Shares and Osprey.
Despite the thrill surrounding the Dogecoin ETF filing, the market response has been subdued. As of now, the value of DOGE has remained relatively stable, reflecting a 3% decline over the past 24 hours and a 7% drop over the past week.
This muted response suggests that while the ETF filing is a positive sign for the long run, it has yet to translate into immediate enthusiasm amongst traders.
But should the Dogecoin ETF receive regulatory approval, it could lead on to a big influx of investment into the memecoin, potentially driving its price higher.
Featured image from DALL-E, chart from TradingView.com