Bitwise Files S-1 For Dogecoin ETF, Polymarket Bettors Raise Approval Odds

Bitwise, one of the leading cryptocurrency asset managers known for being among the first-movers in the Bitcoin and Ethereum exchange-traded fund (ETF) issuers circle, has filed an S-1 form for a spot Dogecoin (DOGE) ETF.

The asset management firm filed the form with the U.S. Securities and Exchange Commission (SEC) on Tuesday, calling the fund the Bitwise Dogecoin ETF. An S-1 is an SEC form that the Wall Street regulator requires for new securities that U.S.-based companies want to issue.

Basically, filing an S-1 is the first step in a multi-pronged process with the SEC before a new ETF goes live in the market.

Bitwise Seeks to Benefit from Massive $DOGE Trades

Bitwise took the first of several steps toward issuing a crypto ETF last week, when it filed an entity with the State of Delaware for a potential Dogecoin ETF.

Matt Hougan, Bitwise’s CIO, told Financial Times after the Delaware filing that the asset manager has been monitoring the top meme coin’s movements. “The reality is that there are a lot of people that want to invest in Dogecoin,” he said.

“It’s the sixth-largest crypto asset in the world by market cap and it trades over $1bn a day,” Hougan added.

While Hougan is positive about the path DOGE is taking, he noted that he doesn’t think all cryptocurrencies are a go for ETFs. “There are corners of the crypto market that are not liquid enough, that are subject to manipulation and are subject to insider control that are not suitable for an ETP (exchange-traded product),” he pointed out.

Apparently, Dogecoin may have passed the said hurdles, given it is widely recognized as the first ever meme token and is also the largest meme coin by market value. As of early Wednesday, the token has a $48.4 billion market cap.

Bitwise Lays Out Dogecoin’s Unique Facets

In its SEC S-1 filing, Bitwise highlighted the key factors that make the DOGE meme coin stand out from other crypto assets:

• Payments – The asset manager noted that the meme token can be used to pay for various goods and services.
• Convertible – It also underscored how DOGE can be converted by users into fiat currencies, such as the U.S. dollar.
• Other uses – According to Bitwise, Dogecoin is particularly unique because its primary function is a peer-to-peer digital currency, not a store of value, which means it can be used for donations, tips, or online purchases among others.
• Faster transactions – The filing specified that the Doge chain “can also settle more transactions per second than the Bitcoin Blockchain,” and also requires less computing power to operate compared to the Bitcoin network.

Bloomberg senior ETF analyst Eric Balchunas noted that Bitwise’s filing is the first of its kind in terms of filings under the “’33 Act (a la $IBIT).” REX Shares filed for a Dogecoin ETF but it is under the 1940 Act, Balchunas explained, and “that isn’t the same true blue physically backed structure,” he pointed out.

The Securities Act of 1993, often called the ’33 Act, is historical legislation that marked the official start of federal securities regulation in the U.S, whereas the Securities Act of 1940 is legislation that prevents fraudulent activities around wealth management, investing, and other similar factors of the financial realm.

Hopes Increase for a $DOGE ETF

Following news of Bitwise’s S-1 filing, cryptocurrency bettors on decentralized market prediction platform Polymarket raised the chances of a Dogecoin ETF being approved sometime this year to 57%.

Earlier this month, chances for a DOGE ETF getting approved by the regulator plunged as low as 26%. It appears Bitwise’s move has brought in significant optimism among crypto users.