Bitwise Asset Management has announced its preparations to launch the first spot Dogecoin ETF in the US, which could start as early as the end of November. According to Bloomberg analyst Eric Balchunas, the product may be automatically approved within 20 days if there is no intervention from the US Securities and Exchange Commission (SEC).
This is reported by Finway
Institutional Interest in Memecoins and ETF Activation
The Bitwise initiative comes after recent successful launches of ETFs for cryptocurrencies such as Solana, Litecoin, and Hedera Hashgraph. This indicates a growing interest among large investors in memecoins. Experts emphasize that institutional legitimization of such assets could significantly impact the digital currency market.
“It seems Bitwise is taking step 8(a) for its spot Dogecoin ETF, which essentially means they plan to take effect in 20 days if there is no intervention.”
Meanwhile, Grayscale Investments has updated its application for a similar Dogecoin ETF, initiating its own 20-day waiting period. This demonstrates that new instruments can emerge in the market even without direct SEC approval, provided the automatic approval process is followed.
Dogecoin Dynamics: Bearish Sentiments and Volatility
Despite the growing enthusiasm for the ETF launch, technical indicators for Dogecoin signal a predominance of bearish trends. Over the last two trading sessions, the cryptocurrency’s price has dropped amid large-scale sell-offs by major holders. Traders are closely monitoring key support levels and the rising volatility accompanying news of fund launches.
As of the time of this news preparation, Dogecoin is trading at $0.1607, with a market capitalization exceeding $24.38 billion, according to CoinMarketCap.
According to CoinDesk, over the last 72 hours, more than 1 billion DOGE (approximately $440 million) has been moved through the wallets of the largest holders. This activity only reinforces the short-term bearish dynamics, despite the overall optimism in the market.
Analysts view the launch of the Dogecoin ETF as an important step toward institutional recognition of memecoins. At the same time, the gap between the actions of major players and market expectations provokes significant price fluctuations of the token.
Regulators are currently not intervening directly but are allowing the automatic approval of new crypto instruments, which contributes to the dynamic development of the industry.