The U.S. Securities and Exchange Commission (SEC) has officially acknowledged the spot Dogecoin ETF filing from 21Shares, kicking off the commission’s timeline to approve or reject the product.

The agency has now 240 days to make a decision on the 21Shares application, which joins Grayscale Investments in the queue for an SEC verdict.

21Shares filed for the DOGE ETF on April 9. The product, which seeks to provide capital markets participants, including institutional investors, with a means to gain exposure to the Dogecoin price, is being launched in response to strong demand from investors.

21Shares Dogecoin ETF: A Closer Look

Announced in March, the 21Shares application for a Dogecoin ETF is part of a broader push by the firm to expand its offerings in the crypto space. The company already has a range of other digital asset products, including Bitcoin (BTC) and Ethereum (ETH) ETFs, which are listed on the European markets.

The 21Shares DOGE ETF will be traded on the New York Stock Exchange (NYSE). It will be backed by a basket of Dogecoin and will be fully disclosed on a daily basis. The ETF will also be subject to regular audits by an independent accounting firm.

The 21Shares application is one of several that have been filed with the SEC for spot Bitcoin and altcoin ETFs. Earlier this year, Grayscale sued the SEC after the commission rejected the asset manager’s application to convert its Grayscale Bitcoin Trust (GBTC) to an ETF.

DOGE Price Reacts to ETF Filing

The recent development in the 21Shares case follows reports that the SEC is planning to announce its verdict on several pending Bitcoin ETF applications by June 12.

Earlier this year, the commission extended the approval period for the 21Shares and CoinShares Bitcoin ETF. Both applications were initially due to be approved or rejected by March 15. However, the SEC decided to defer its decision and set a new deadline of June 12.

The SEC has been slow to approve new crypto ETFs. The commission approved the first futures-based Bitcoin ETFs in 2021 and the first futures-based Ethereum ETFs earlier this year. However, the agency has yet to approve any spot crypto ETFs.

The SEC’s stance on crypto ETFs has been a subject of debate among industry insiders. Some experts believe that the commission is being too cautious and that it should approve more crypto ETF products to meet the growing demand from investors. Others argue that the SEC is taking the necessary steps to ensure that the crypto ETF market is regulated and protected from fraud. Ultimately, the decision of whether or not to approve the 21Shares Dogecoin ETF lies with the SEC. The commission will need to consider a variety of factors, including the structure of the ETF, the liquidity of the underlying asset, and the risks involved in investing in cryptocurrencies. If the SEC does decide to approve the 21Shares product, it will be a significant milestone for the crypto industry. It would also open the door for the approval of other spot crypto ETFs, which could usher in a new wave of institutional capital into the digital asset markets.