Now 21Shares has formally filed an S-1 form with the U.S. Securities and Exchange Commission (SEC). Their goal is to be the first to bring a Dogecoin (DOGE) exchange-traded fund (ETF) to the US market. The filing represents a major milestone towards bringing the increasingly popular cryptocurrency into regulated financial markets. If this trend continues, it could be a big chance for investors to get exposure to DOGE. The decision comes as crypto optimism is on the rise and the regulatory landscape appears to be changing.
As with its own Bitcoin ETF, the proposed DOGE ETF would track DOGE’s performance through the CF Dogecoin-Dollar Settlement Price. Coinbase, one of the leading crypto exchanges, will act as the ETF’s custodian. This action ensures that the ultimate safe holding of the much-discussed underlying assets is secured. 21Shares, creators behind first-of-their-kind crypto investment products, will be at the helm of the Dogecoin ETF—if it gets approved, that is.
ETF Details and Market Context
The ETF provides investors with a convenient, regulated and accessible way to invest in Dogecoin. This removes the headache of actually owning the cryptocurrency itself. This approach could attract a broader range of investors, including institutional players, who may be hesitant to navigate the technical aspects of cryptocurrency storage and trading. The filing comes amid trading obstacles for Dogecoin which has been trading just under $0.14.
Overall, 21Shares is no stranger to the Dogecoin investment arena. The firm had previously issued a physically-backed Dogecoin exchange-traded product (ETP) on the SIX Swiss Exchange. This new product just underscores 21Shares’ focus to have as many varied investment vehicles available for Dogecoin.
In that scenario though, the launch of a Dogecoin ETF in the U.S. would have an outsized effect on the entire cryptocurrency market. Dogechain gives Dogecoin holders a new way to invest and spend their funds, while making Dogecoin more legitimate and accepted as an asset.
Regulatory Environment and Altcoin ETFs
21Shares is one of several firms that has applied to bring crypto ETFs to the U.S. market. This move is a continuation of an ongoing trend among asset managers. 21Shares makes a third asset manager to file for a DOGE ETF, after parallel tries from Grayscale and Bitwise. Paul Atkins, another former SEC Commissioner, now heads the SEC as it continues to review multiple applications for altcoin-based ETFs. These applications are for Solana, Litecoin, XRP and Dogecoin on the network. This change in regulatory sentiment has given hope to the industry’s proponents.
In fact, the SEC has recently suspended or withdrawn a number of their own enforcement cases against major cryptocurrency firms like Coinbase, Kraken, and most recently Ripple. This progress indicates a bit of a sea change in the administration’s overall attitude toward the burgeoning cryptocurrency industry.
Approval for a Dogecoin ETF would be especially momentous, likely setting the stage for other altcoin-based ETFs.
21Shares' Global Strategy
21Shares' dual-market approach, with a Dogecoin ETP in Europe and a proposed ETF in the U.S., underscores the company's ambition to connect global investors to DOGE. Investors on both sides of the pond can now trade Dogecoin via regulated investment products thanks to this strategic initiative.
Today, the company continues to thrive across the European marketplace. This experience has primed it to more effectively manage and distribute crypto-backed investment products. That knowledge may be an asset as it continues to chart a course through the U.S. regulatory environment.
By filing this S-1 form, it’s a strategic move to provide Dogecoin a bridge to the traditional finance ecosystem. Such a move would significantly increase its liquidity and market capitalization.
