Grayscale is aiming to launch the first spot Dogecoin ETF and has filed a proposal with the SEC. The action sent DOGE price up nearly 2% in 24 hours.
Grayscale Seeks SEC Approval For Its Dogecoin ETF Amid Market Anticipation
Grayscale has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch the Grayscale Dogecoin Trust ETF. The trust aims to give investors the access to Dogecoin without necessarily holding the cryptocurrency. If it is approved, it will be listed on the New York Stock Exchange Arca under the stock symbol GDOG.
The SEC filing outlines that the trust will hold Dogecoin as its sole asset, with Coinbase Custody Trust Company serving as the custodian. It will issue and redeem shares in large blocks called “Baskets,” each representing 10,000 shares. Initially, these will be handled through cash transactions rather than in-kind transfers of DOGE.
The Dogecoin ETF’s value will mirror CoinDesk Dogecoin Reference Rate. It indicates the market price of DOGE without any fees and liabilities. The trust will not trade actively and use no leverage or derivatives, but intends to operate passively.
The Dogecoin ETF proposal follows NYSE’s January 31, 2025 application guidelines for listing approval. Since that application has not yet been approved, Grayscale indicates it will not proceed with the Dogecoin ETF’s share offerings until it is cleared.
This filing follows an earlier filing by Grayscale for a U.S. IPO during the crypto week. If the SEC approves this trust, Grayscale Dogecoin Trust ETF can become a reference point for DOGE investments. This may affect institutional investors’ involvement in the meme coin market.
The risk factors identified in the filing of the trust are sharp changes in DOGE price, uncertainty concerning regulation, and possible competition with other digital assets.
DOGE Price Surges Almost 2.5% Following The Filing
After the Dogecoin ETF filing, DOGE price rose 2.5% the last day. The meme coin price increase to $0.22976 from $0.22395. According to TradingView data, the sharp price uptrend happened towards the end of the trading session, ending a sideways trend. DOGE experienced a 2.67% in the last seven days while its one-month increase is 14.65%.
Dogecoin price surged as investors reacted to Grayscale’s SEC filing
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Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
He holds a degree in Geophysics from OAU, Nigeria. When he’s not writing, he loves watching soccer and reading educative journals.
He can be reached via [email protected]
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