In a significant development for both memecoin and the broader cryptocurrency landscape, Bitwise Asset Management has filed to establish a Dogecoin ETF in the state of Delaware.
This application is a significant addition to the growing list of exchange-traded products aimed at providing investors with novel opportunities for exposure to cryptocurrencies.
How a Trump presidency could change cryptocurrency regulations
The timing of a novel application for the Dogecoin ETF is particularly significant given the recent political landscape in the United States. WITH Donald Trump after taking office for a second term, optimism about the cryptocurrency regulatory environment has increased again.
President Trump, who previously served as president from 2017 to 2021, has expressed his intention to create a more favorable climate for digital assets, a pointed contrast to the regulatory scrutiny that has characterized the Biden administration.
Under former President Joe Biden, the U.S. Securities and Exchange Commission (SEC), led by Gary Gensler, took a stringent approach to regulating cryptocurrencies. This has often resulted in a lack of transparency and an enforceable strategy, leading to multiple lawsuits against key players in the digital asset space.
The regulatory landscape was characterized by ambiguity, leaving many investors and businesses unsure about compliance and future opportunities. However, President Trump’s administration has already begun implementing regulatory changes aimed at supporting innovation in cryptocurrencies.
Recent meetings to key regulatory agencies and the creation of a novel crypto council in the White House signal a shift in focus. Observers believe these changes could pave the way for more cryptocurrencies to gain access to investment vehicles such as ETFs.
Bitwise leads the way in the Dogecoin ETF app
The filing for Dogecoin ETF is also inspired by the success of similar investment products that debuted last year, particularly those focused on Bitcoin (BTC) and Ethereum (ETH).
These ETFs have received significant interest from institutional investors, confirming the demand for cryptocurrency-based investment options.
Bitwise is positioning itself as a key player in this emerging market after filing for the Dogecoin ETF with similar filings for XRP and Solana.
Other asset managers are also seeking approval for ETFs that include Litecoin (LTC), Hedera (HBAR), and even additional memecoins such as TRUMP and BONK, as evidenced by recent applications from companies such as REX Shares and Osprey.
Despite the excitement surrounding the Dogecoin ETF filing, the market reaction was muted. For now, the DOGE price remains relatively stable, reflecting a 3% decline over the past 24 hours and a 7% decline over the past week.
This muted response suggests that while applying to an ETF is a positive sign for the future, it has not yet translated into immediate enthusiasm among traders.
However, if the Dogecoin ETF receives regulatory approval, it could lead to a significant inflow of investment into memecoin, potentially increasing its price.
Featured image from DALL-E, chart from TradingView.com
