Key Points
- Bitwise Asset Management’s Dogecoin ETF is closer to launch as NYSE Arca files a 19b-4 proposal.
- Coinbase will be the Dogecoin custodian for the fund, with the Bank of New York Mellon handling cash custody.
NYSE Arca has filed a 19b-4 proposal to list and trade shares of Bitwise Asset Management’s Dogecoin exchange-traded fund.
The filing, made on March 3, could allow the exchange to offer the Bitwise Dogecoin ETF, thus providing investors with direct exposure to the well-known memecoin via the New York Stock Exchange subsidiary.
ETF Details and Structure
The ETF is set up as a Delaware statutory trust and will be managed under a trust agreement, with Bitwise acting as the sponsor.
The fund aims to track Dogecoin’s value and cover its operational costs, with net asset value calculations linked to a pricing benchmark from CF Benchmarks Ltd.
Rather than using derivatives, the ETF will hold Dogecoin directly, keeping only small cash reserves for operational purposes.
All fees, including Bitwise’s management fee, will be paid in Dogecoin.
The ETF focuses exclusively on Dogecoin, and any accidental receipt of other digital assets, such as from forks or airdrops, has been disclaimed under its trust agreement.
Investment and Custody
The fund plans to use cash creations and redemptions, which means investors will not be able to contribute or withdraw Dogecoin directly.
Coinbase is named as the fund’s Dogecoin custodian, while the Bank of New York Mellon will handle cash custody, administration, and transfer agency functions.
Bitwise filed for the registration of a Bitwise Dogecoin ETF in late January and followed up with an S-1 registration with the SEC on Jan. 28.
Bitwise is not the only firm looking at a Dogecoin ETF. Rex Shares and Osprey Funds have also submitted filings for similar products, along with Grayscale. The commission acknowledged Grayscale’s application on Feb. 13.
Bitwise also submitted its S-1 for an Aptos ETF on Feb. 27, filing with the Delaware Department of State. If approved, the issuer could be the first firm in the U.S. to launch an APT-based ETF.
