Grayscale Investments, one of many largest digital asset administration corporations on the earth, has made one other daring transfer within the crypto ETF area. The firm not too long ago submitted an amended S-1 registration assertion to the US Securities and Exchange Commission (SEC), this time for its Dogecoin product.
The submitting reveals Grayscale’s intention to transform its current Grayscale Dogecoin Trust (GDOG) right into a Spot Dogecoin exchange-traded fund (ETF), a transfer that might give the meme coin an unprecedented stage of publicity amongst institutional traders.
Grayscale’s Pursuit Of A Dogecoin ETF
Grayscale has persistently been on the forefront of pushing crypto merchandise into the mainstream. Long earlier than the launch of Spot Bitcoin ETFs, the digital asset-focused funding platform was one of many first corporations to introduce different funding merchandise that gave institutional traders publicity to cryptocurrencies.
Grayscale’s Bitcoin and Ethereum merchandise have been transformed to Spot Bitcoin ETFs, and now the corporate is now taking the identical playbook to the following greatest belongings. According to a latest submitting with the US SEC, Grayscale is now seeking to convert its current Grayscale Dogecoin Trust (GDOG) right into a Spot Dogecoin exchange-traded fund (ETF). Grayscale has managed this DOGE Trust since 2021 and the newest submitting, if permitted, will convert it to the general public ETF format.
The conversion of the Grayscale Dogecoin Trust right into a Spot ETF would make DOGE publicity obtainable to a broader vary of traders, together with those that might not be comfy holding crypto immediately. According to the S-1 submitting, the proposed Dogecoin ETF can be listed on NYSE Arca underneath the ticker ‘GDOG.’
The ETF will monitor the worth of DOGE primarily based on the CoinDesk DOGE Reference Rate, which sources pricing from main exchanges together with Kraken, Gemini, Coinbase, and Bitstamp. Grayscale has additionally chosen Coinbase to function the official custodian of the DOGE held by the ETF. The submitting additionally specifies that ETF shares shall be created and redeemed in blocks of 10,000 shares, generally known as “Baskets.”
Market Impact And What Comes Next
Grayscale’s transfer right into a Spot Dogecoin ETF comes throughout a interval when traders are on the outlook for the following crypto ETF that may hit the market. Grayscale already has pending functions to transform its Cardano and XRP Trusts into Spot ETFs, however these are but to be permitted.
As it stands, there isn’t a particular deadline for the SEC to offer its approval. The nature of the S-1 submitting means the company will evaluation the submitting, difficulty remark letters, and await the issuer to reply with amendments till it’s glad.
Billions of {dollars} have already flowed into Bitcoin and Ethereum by way of their Spot ETFs. If Grayscale’s submitting is permitted, Dogecoin could possibly be the following benefactor of those institutional inflows. Institutional traders, who’ve largely stayed away from meme cash, would have a regulatory-compliant channel to realize publicity to Dogecoin.
At the time of writing, Dogecoin was buying and selling at $0.265.
Featured picture from Unsplash, chart from TradingView
Editorial Process for bitcoinist is centered on delivering totally researched, correct, and unbiased content material. We uphold strict sourcing requirements, and every web page undergoes diligent evaluation by our crew of prime expertise consultants and seasoned editors. This course of ensures the integrity, relevance, and worth of our content material for our readers.
