- 21Shares files to list Dogecoin ETF on Nasdaq amid SEC review.
- ETF offers safe, passive Dogecoin access without owning the asset.
In a significant development, Nasdaq submitted a 19b-4 form to the U.S. Securities and Exchange Commission (SEC). The 21Shares Dogecoin (DOGE) Exchange-Traded Fund (ETF) is presented through this filing for SEC approval to obtain listing status. The SEC extended its review of the proposed Dogecoin ETF by Bitwise until June 15 while continuing its assessment of the 21Shares Dogecoin ETF proposal.
Coinbase Custody to Hold DOGE for New ETF
The filing reports that the 21Shares Dogecoin ETF functions as a passive fund product. The fund avoids using leverage and derivatives along with all speculative trading methods. The fund functions as a passive tracker of Dogecoin performance and bases its figures on the CF DOGE-Dollar U.S. Settlement Price Index.
The Trust functions to replicate Dogecoin’s market value actions. The fund tracks Dogecoin performance by removing both fund expenses and liabilities during its operation. Dogecoin price exposure will be accessible to investors through this fund despite not owning the asset directly.
According to the filing, actual Dogecoin funds the entire backing of the ETF. The company Coinbase Custody Trust Company LLC serves as the official custodian of these deposited assets. Therefore, the stakeholders involved in Dogecoin operations will not engage with the actual currency directly. The “Dogecoin Counterparty” will perform trading in DOGE when customers issue or redeem shares for this particular ETF.
The Trust states explicitly that it will refrain from any Dogecoin-based reward generation. Dogecoin held by the Trust will remain in its possession while the Trust avoids the practice of using Dogecoin for lending or revenue generation. The fund operates without extra risks while staying committed to its main goal.
The document contains information regarding the regulatory framework of the ETF. The Trust does not fall under registration requirements set by the Investment Company Act of 1940 for investment companies. The fund does not fall under the definition of commodity pools in terms of the Commodity Exchange Act of 1936. As a result, the fund operates outside the jurisdiction of the Commodity Futures Trading Commission, and its sponsor does not fall under the commodity trading advisor classification.
DOGE ETF Could Bridge Crypto with Traditional Finance
Meanwhile, Nasdaq requires the ETF to comply with all existing trading standards that govern its platform. Forty thousand shares of the ETF must be in ready condition to proceed with listing. The ETF falls under regular surveillance of Nasdaq’s monitoring systems. The surveillance system aims at stopping market manipulation.
The Nasdaq company used its membership in the Intermarket Surveillance Group (ISG) as a basis for making its proposal stronger. Through this exchange network, members will receive automated information-sharing capabilities that help them uncover unusual activities. The system enhances market oversight functions and protects investors better.
In addition, the European market received Dogecoin-based exchange-traded products (ETPs) after 21Shares joined forces with the House of Doge. The Dogecoin Foundation declares these ETPs as its single approved investment product. Because of their official Dogecoin endorsement, these products represent the most secure options for investing in Dogecoin within the market.
The cryptocurrency management company 21Shares operates out of Switzerland. This company remains dedicated to launching several crypto ETF products which will hit the market during the year 2025. The company investigates developing ETF funds, which would include products for Solana as well as XRP, together with various other alternative cryptocurrencies. The interest demonstrated by institutional investors toward digital assets continues to rise.
In conclusion, the market entry of the 21Shares Dogecoin ETF may represent a transformative moment for cryptocurrency acceptance between conventional financial institutions. The proposed approval will create a secure framework that allows investors to access Dogecoin exposure in a regulated manner.
