Nasdaq has filed formal paperwork with the U.S. Securities and Exchange Commission seeking approval to list and trade shares of the 21Shares Dogecoin Exchange-Traded Fund, while the SEC simultaneously postponed its decision on a similar product from Bitwise. The developments come amid relatively stable trading for the meme-inspired cryptocurrency, which hovered around $0.17 on Wednesday.
What to Know:
- Nasdaq submitted a 19b-4 form to the SEC on Tuesday for the proposed 21Shares Dogecoin ETF
- The SEC has extended its review period for Bitwise's spot Dogecoin ETF application until June 15, 2025
- Dogecoin's price experienced a slight decline following the news but stabilized around $0.17
Regulatory Developments for Cryptocurrency Investment Products
The filing by Nasdaq represents the latest attempt to create mainstream investment vehicles tied to cryptocurrencies beyond Bitcoin and Ethereum. The exchange's 19b-4 form, submitted Tuesday, proposes listing and trading shares of the 21Shares Dogecoin ETF, which would track the price of the popular meme cryptocurrency.
This regulatory filing follows 21Shares' own S-1 registration submitted to the SEC on April 10. The asset management company designed the fund to provide investors exposure to Dogecoin's price movements without requiring direct cryptocurrency purchases.
According to the filing, Coinbase Custody Trust would serve as the official custodian for the ETF, securing the underlying tokens.
During the same period, the SEC announced it had postponed its decision on Bitwise's spot Dogecoin ETF application. The regulator extended its review period until June 15, 2025, giving it additional time to consider the proposals from U.S. exchanges NYSE Arca and Cboe BZX Exchange to list Bitwise's Dogecoin product.
The cryptocurrency market responded modestly to these developments. Dogecoin experienced a slight price decline on Tuesday following the announcements, but stabilized around the $0.17 level by Wednesday.
Market Performance and Technical Analysis
Dogecoin has encountered persistent resistance near the weekly level of $0.18 since last week. The cryptocurrency declined by approximately 4% over a three-day period beginning Sunday, settling at its current price point of roughly $0.17.
Technical indicators suggest potential challenges ahead. If DOGE continues its corrective pattern, analysts believe it could retest its April 22 low of $0.15. The Relative Strength Index on the daily chart reads 54 and is trending downward toward its neutral level of 50, signaling weakening bullish momentum in the market.
"If the RSI falls below its neutral level of 50, the Dogecoin price will likely fall sharply," noted market analysts tracking the cryptocurrency's performance.
However, more optimistic scenarios remain possible. Should DOGE break above and successfully close beyond the weekly resistance at $0.18, technical patterns suggest it could rally toward the psychologically significant $0.22 level.
The market's response to these regulatory developments remains measured, with investors appearing to take a wait-and-see approach as the SEC considers multiple Dogecoin ETF applications simultaneously.
Closing Thoughts
The push for Dogecoin ETF approval represents another step in cryptocurrency's gradual integration into traditional financial markets. While the SEC continues its cautious approach through delayed decisions, Nasdaq's filing demonstrates continued institutional interest in expanding cryptocurrency investment options beyond Bitcoin and Ethereum.