21Shares Targets Dogecoin Spot ETF Approval as Market Anticipates Growth

21Shares Seeks SEC Approval for Dogecoin Spot ETF Amidst Market Anticipation

21Shares, a U.S.-based investment firm, has filed an application with the Securities and Exchange Commission (SEC) for a spot exchange-traded fund (ETF) tracking the price of Dogecoin. This follows similar applications from firms like Bitwise and Grayscale, reflecting a growing interest in Dogecoin-focused ETFs. Coinbase Custody will handle custody services for the proposed fund, though details regarding the listing exchange, ticker symbol, and fees remain undisclosed. SEC approval requires the submission of Form 19b-4, and the application is currently in its early stages.

High Market Expectations for a Dogecoin Spot ETF

The cryptocurrency sector has witnessed a recent surge in ETF applications. Following the approval of Bitcoin and Ethereum ETFs, numerous altcoin applications have been submitted to the SEC. Bloomberg ETF analyst James Seyffart describes this strategy as a "spaghetti tactic," aiming to identify which products the new SEC administration might approve.

Seyffart estimates a 75% probability of SEC approval for the Dogecoin ETF, while the prediction market Polymarket puts the likelihood at 64%.

Spot Dogecoin ETF: Background

Dogecoin currently holds the eighth position among global cryptocurrencies, boasting a market capitalization of approximately $24.2 billion. Initially conceived as a lighthearted project, derived from Bitcoin's Lucky Coin sidechain, Dogecoin has attracted substantial investor attention, fueled by its cultural impact and various financial ventures.

21Shares' European Dogecoin Initiatives

21Shares is also expanding Dogecoin's reach in Europe. The firm partnered with the House of Doge, the Dogecoin Foundation's corporate arm, to launch a fully supported Dogecoin exchange-traded product on the SIX Swiss Exchange, trading under the ticker "DOGE" with a 2.5% annual management fee.

21Shares President Duncan Moir highlighted Dogecoin's evolution beyond a mere cryptocurrency, viewing it as a symbol of a cultural and financial movement. Moir expresses confidence in Dogecoin's potential and aims to provide investors with a regulated investment vehicle.