Bitwise’s Dogecoin ETF may launch in 20 days. Will the SEC intervene?

Bitwise Asset Management has set the stage for a potential launch of its spot Dogecoin exchange-traded fund by submitting an 8(a) filing to the Securities and Exchange Commission. The filing triggers an automatic 20-day approval countdown, which, if unhindered, could see the product hitting the market before the month’s end. Notably, utilizing the 8(a) regulations allows Bitwise to sidestep the conventional regulatory review process and fast-track its ETF.

In the past, the SEC delayed Bitwise’s initial Dogecoin ETF application and subsequently put it on hold. This move followed a similar delay in Grayscale’s application. To circumvent these bureaucratic hurdles, Bitwise has altered its approach. By swiftly amending its S-1 registration statement without delay, the firm aims to streamline the listing process, potentially paving the way for automatic approval post the 20-day period, even without explicit SEC authorization.

The government shutdown context in which this unfolds only amplifies the significance of these developments. With the SEC operating at minimal capacity due to the shutdown, the approval of multiple listing standards earlier in October marked a key step toward expediting the processing of crypto ETF applications. The guidance issued by the SEC post-shutdown clarified that companies could proceed with amendments to their S-1 registration documents promptly, removing ambiguities in previous timelines and accelerating the availability of various crypto products on the market.

Bitwise’s recent success with its staking Solana ETF, amassing over $500 million in assets, positions its Dogecoin ETF as a formidable contender in the memecoin ETF sphere. This move comes after REX-Osprey already rolled out the first spot Dogecoin ETF, DOJE, under the Investment Company Act of 1933. DOJE’s launch surpassed expectations, boasting over $24 million in trading volume within hours, far outperforming XRP futures ETFs.

Despite the initial fervor, post-launch stabilization saw DOJE’s assets under management decline from over $35 million to $27 million. This volatility mirrors Dogecoin’s price fluctuations, where despite a recent 11.78% surge, the coin faced a 2.96% drop over a week and a 31.42% decline in the last 30 days. On-chain data denotes a concentration of Dogecoin in large holders’ wallets, with substantial transactions triggering selling pressure amidst bullish ETF developments.

Technical resistance levels pose a hurdle for Dogecoin’s sustained growth, with support zones becoming crucial in maintaining stability before Bitwise’s ETF launch. Any amendments to Bitwise’s filing could reset the clock, extending the waiting period. However, the automatic approval mechanism signifies a paradigm shift in how crypto ETF products reach the market, potentially heralding a new era for digital asset investment opportunities.