Grayscale Enters the Race for Dogecoin ETF in the US
In a thrilling turn of events, the competition to launch a Dogecoin Exchange-Traded Fund (ETF) in the United States is heating up as Grayscale, a leading asset management firm, throws its hat into the ring.
Grayscale’s Ambitious Plan to Transform Dogecoin Trust into an ETF
On Friday, Grayscale made waves by unveiling a new Dogecoin Trust, aimed at providing investors with exposure to the popular cryptocurrency DOGE. Shortly thereafter, the asset manager took a significant step by filing a form 19-4b with the Securities and Exchange Commission (SEC) through the New York Stock Exchange (NYSE). This filing intends to list and trade shares of the Trust, eventually transitioning it into an ETF. To clarify, a trust is a private investment vehicle with shares traded on the over-the-counter (OTC) market, whereas an ETF is designed for open market trading, such as on stock exchanges.
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In its proposed listing, the Grayscale Dogecoin Trust (DOGE) is co-sponsored by Grayscale Operating LLC and Grayscale Investment Sponsors LLC, with Digital Currency Group (DCG) serving as the designated trustee. Additionally, Coinbase Custody has been appointed as the Custodian, while the Bank of New York Mellon (BNY) will function as the administrator and transfer agent of the ETF, pending SEC approval.
By submitting this application, Grayscale joins other asset managers like Bitwise, Rex Shares, and Osprey Funds in the quest to launch a Dogecoin ETF in the US. With the change in the US administration and new SEC leadership, asset managers are optimistic about expanding the crypto ETF market, eyeing investment funds linked to cryptocurrencies such as Litecoin, Solana, XRP, Dogecoin, and the recently added Polkadot.
This surge of proposals has sparked a mix of excitement and criticism within the crypto community. Notably, Bloomberg ETF specialist James Seyffart remarked on these reactions, emphasizing that the SEC permits asset managers to introduce various products, with the market ultimately determining their value.
Dogecoin Whales on a Buying Spree, Accumulate 560 Million DOGE
In other notable developments, Dogecoin whales have embarked on a significant buying spree, acquiring 560 million DOGE, worth approximately $185.4 million, over the past week. This activity follows a major market selloff and signals renewed interest and confidence among large DOGE holders, a positive sign for everyday traders.
As of now, Dogecoin is trading at $0.3279, reflecting a 0.16% increase in the past 24 hours. Simultaneously, its trading volume has surged by 36.68% during the same period, indicating heightened market activity. With a market capitalization of $49.98 billion, Dogecoin ranks as the eighth-largest cryptocurrency and the leading memecoin in the market.
