Progress toward a Bitcoin spot ETF is confirmed with the recent amendment to Bitwise's filing for a Dogecoin ETF. This development suggests increased commitment from the SEC, paving the way for possible approval of the first product accessible to institutional investors.
Bitwise Adjusts Its Filing
- Bitwise's S-1 filing now incorporates "in-kind" creation and redemption mechanisms, authorizing direct exchange between ETFs and DOGE tokens.
- This type of structure, already used for Bitcoin and Ethereum ETFs, is generally seen as a positive sign of regulatory progress.
The SEC Shows Signs of Openness
- Experts believe these changes signal closer collaboration between Bitwise and the SEC, reducing the risk of abrupt rejections.
- Several other crypto assets (Solana, XRP, etc.) are also the subject of ETF filings, confirming a global movement toward institutional openness.
Opportunities and Threats
Opportunities:
- Possible Rise of DOGE: Approval of a spot ETF could attract new investors, fueling a price surge.
- Institutional Integration: The in-kind model improves tax efficiency and attracts professional investors, strengthening Dogecoin's legitimacy.
Threats:
- Risk of Rejection or Delay: The SEC could further delay the decision, causing disappointment and volatility.
- Speculative Bubble Effect: In the absence of a fundamental basis, a massive influx of institutional investors could amplify fluctuations.
Conclusion
Bitwise's revised application for a Dogecoin ETF marks a significant step toward possible approval. If this confirms a favorable trend from the SEC, the ETF launch could transform DOGE's dynamics. However, without a guarantee of approval, the path remains fraught with regulatory pitfalls and volatility risks.
