In an exciting development, the race for the Dogecoin ETF in the US is gaining serious momentum as prominent asset manager Grayscale has now joined the fray.
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Grayscale Seeks To Convert Dogecoin Trust To ETF
On Friday, Grayscale announced the launch of a new Dogecoin Trust aimed at granting investors exposure to the DOGE cryptocurrency. However, several hours later, the asset manager filed a form 19-4b with the SEC through the New York Stock Exchange (NYSE) to list and trade shares of this Trust ultimately converting to an ETF. For context, a trust is a private investment vehicle, shares of which are traded on the over-the-counter (OTC) market. Meanwhile, an ETF is designed to trade on open markets such as exchanges.
According to its proposed listing, the Grayscale Dogecoin Trust (DOGE) (the “Trust) is jointly sponsored by Grayscale Operating LLC and Grayscale Investment Sponsors LLC with the designated trustee being Digital Currency Group (DCG). Meanwhile, Coinbase Custody has been appointed as Custodian with the Bank of New York Mellon (BNY) serving as administrator and transfer agent of the ETF upon approval by the SEC.
Following Grayscale’s application, they join other asset managers such as Bitwise, Rex Shares, and Osprey Funds as contenders to launch a Dogecoin ETF in the US. With Donald Trump back in the White House, and the change in SEC leadership, asset managers are highly confident in expanding the crypto ETF market with applications for investment funds tied to Litecoin, Solana, XRP, Dogecoin, and most recently Polkadot.
This wave of proposals has drawn many reactions of excitement and criticism alike from the general crypto community. Interestingly, Bloomberg ETF expert James Seyyart has commented on these reactions stating asset managers are allowed to launch any products by the SEC and the market will ultimately decide where value lies.
Related Reading: Dogecoin Teases Ascending Triangle On 4-Hour Chart, Here’s What Could Happen If It Forms
Dogecoin Whales Acquire 560 Million DOGE
On other news fronts, Dogecoin whales are currently on an accumulation spree having purchased 560 million DOGE valued at $185.4 million in the past week. This development which follows a major market selloff indicates renewed market interest and confidence from these larger holders of DOGE which is considered bullish by everyday traders.
At press time, DOGE is trading at $0.3279 after a gain of 0.16% in the past day. Meanwhile, its trading volume has gained by 36.68% in the same period indicating significant market activity. With a market cap of $49.98 billion, Dogecoin ranks as the eighth largest cryptocurrency and largest memecoin in the market.
Featured image from Freepik, chart from Tradingview
