Swiss digital asset manager 21Shares has filed an application with the U.S. Securities and Exchange Commission seeking approval to launch the first spot Dogecoin exchange-traded fund, adding the popular meme cryptocurrency to a growing list of digital assets seeking mainstream investment vehicles.
What to Know:
- 21Shares has partnered exclusively with House of Doge Inc., the corporate arm of the Dogecoin Foundation
- Market predictions show a 64% chance of SEC approval, according to betting platform Polymarket
- The firm has already launched a Dogecoin ETP on the SIX Swiss Exchange with a 2.50% fee
The filingnames Coinbase Custody as the proposed custodian for the fund, though specific details such as the ETF's ticker symbol, fee structure and listing exchange have not yet been disclosed.
Dogecoin, the original meme cryptocurrency created in 2013 as a joke but now with serious market presence, was trading at $0.156 at the time of the announcement.
This latest application follows similar attempts by other cryptocurrency asset managers, including Bitwise and Grayscale, to launch spot ETFs for Dogecoin. The growing interest comes after the SEC's landmark approvals of spot Bitcoin and Ethereum ETFs earlier this year, which opened the door for institutional investors to gain regulated exposure to digital assets.
Market Analysts See Favorable Odds for Approval
Industry experts view the application with cautious optimism. Bloomberg analysts Eric Balchunas and James Seyffart projected in February a 75% likelihood that the SEC would approve a spot Dogecoin ETF by 2025.
This forecast aligns with current betting markets, where Polymarket currently assigns a 64% probability of regulatory approval.
The optimistic outlook reflects a broader shift in the cryptocurrency sector, where institutional interest has expanded beyond the two largest cryptocurrencies. Regulatory comfort with these alternative assets appears to be growing incrementally following the Bitcoin and Ethereum precedents.
21Shares has been aggressive in pursuing regulatory approval for a range of cryptocurrency ETFs. Beyond the Dogecoin application, the firm has also filed with the SEC for spot ETFs tracking both Polkadot and XRP, demonstrating its strategy to build a comprehensive portfolio of cryptocurrency investment products.
Swiss Exchange Already Hosts Dogecoin Investment Product
While pursuing SEC approval, 21Shares has already launched a similar product in Switzerland. The firm announced an exclusive partnership with House of Doge to create the 21Shares Dogecoin ETP, which is now trading on the SIX Swiss Exchange under the ticker symbol DOGE.
This exchange-traded product is fully backed by physical Dogecoin holdings and targets institutional investors seeking regulated exposure to the cryptocurrency. The product carries a management fee of 2.50%.
"With this exclusive partnership, we're providing investors with the most direct and accessible way to gain exposure to the Dogecoin ecosystem," said Duncan Moir, President at 21Shares. "Dogecoin has become more than a cryptocurrency: it represents a cultural and financial movement that continues to drive mainstream adoption, and DOGE offers investors a regulated avenue to be part of this exciting project."
The Swiss-listed product could serve as a template for the U.S. version if approved by the SEC. The regulatory body has historically been cautious about cryptocurrency investment products but has gradually expanded the range of approved vehicles as the market has matured.
House of Doge Inc. will support the proposed U.S. trust with marketing, strategy, and related services according to the filing, leveraging the organization's deep connections to the Dogecoin community. This partnership could help differentiate the 21Shares offering from competing proposals in what is becoming an increasingly crowded field.
Final Thoughts
21Shares' application for a spot Dogecoin ETF represents the next frontier in cryptocurrency investment products following the SEC's approval of Bitcoin and Ethereum funds. With favorable market predictions and an established international product already trading, the firm has positioned itself at the forefront of bringing mainstream investment access to the popular meme cryptocurrency.