In a significant move toward bringing meme cryptocurrencies into the mainstream, the U.S. stock exchange Nasdaq has filed a request with the U.S. Securities and Exchange Commission (SEC) to list a new exchange-traded fund (ETF) focused on Dogecoin. This cryptocurrency started as a joke but has grown into a major digital asset.
The ETF, created by the investment firm 21Shares, would allow people to invest in Dogecoin, the world’s eighth-largest cryptocurrency by market capitalization, without needing to buy or store the digital coin directly.
How the Dogecoin ETF Will Work
This ETF would work like other already-existing crypto investment funds in the market, such as those for Bitcoin and Ethereum. Investors would be able to trade shares of the ETF on the stock exchange, just like regular stocks, while the fund itself tracks the price of Dogecoin.
According to the filing, 21Shares plans to keep the Dogecoin ETF simple. It won’t aim to make extra profits through active trading or by using complex tools like leverage. Instead, the fund will follow the price of Dogecoin without trying to outperform the market.
Growing Interest in Crypto ETFs
The filing was made earlier this month and marks the latest push by 21Shares to expand its lineup of crypto-based investment products. The SEC is currently reviewing 72 crypto-related ETF filings, including the one from 21Shares. The asset management firm has already launched spot ETFs for Bitcoin and now wants to offer the same option for Dogecoin.
To support this move, 21Shares is teaming up with House of Doge, a company affiliated with the Dogecoin Foundation, for marketing purposes. Coinbase Custody, a trusted name in crypto storage, will hold the Dogecoin assets behind the ETF.
Another recent filing includes Grayscale’s request for approval of a spot Solana ETF, which, if approved, would be listed on NYSE Arca. These filings signal a growing push to make various cryptocurrencies more accessible to mainstream or traditional investors.
If approved, the Dogecoin ETF could make it easier for more people to invest in Dogecoin and pave the way for more crypto products in the future.
Meanwhile, the U.S.-approved spot BTC and ETH ETFs have recorded many high-inflow days recently as investors massively stack the funds, taking a stand for profits when the crypto market surges.
