Grayscale is making a big move with Dogecoin as the digital asset management company has submitted papers to launch a new Dogecoin ETF. Meanwhile, Dogecoin’s price is rising again, leaving investors with the question of whether another big surge is on the way.
Grayscale Revises Filing To Launch Dogecoin ETF Under Ticker GDOG
Grayscale has updated its filing with the SEC to turn its current Dogecoin Trust into a full ETF. If the SEC approves, the fund will trade on the NYSE Arca under the ticker symbol GDOG. Regular investors will be able to purchase shares of the ETF and gain exposure to Dogecoin in a regulated manner.
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The updated filing names Coinbase for two roles. The exchange will act as the custodian, responsible for safely holding the fund’s Dogecoin, and it will also operate as the prime broker, managing the primary trading activities associated with the exchange-traded fund.
Wall Street has already shown signs of demand for exchange-traded fund products. Rival Osprey’s Dogecoin ETF, which trades under ticker DOJE, pulled in $17 million in its first trading session. Grayscale could be aiming to match or even surpass that success with its own Dogecoin ETF, as the race to bring meme-coin ETFs to the market intensifies.
SEC Fast-Track Rules Boost Dogecoin ETF Momentum As Crypto Products Surge
Recent rule changes at the SEC are making the approval process for ETFs much quicker. A good example came earlier this year with Grayscale’s CoinDesk Crypto 5 ETF, also known as GDLC. That fund, which tracks the top five cryptocurrencies by market cap, drew $22 million in inflows on its first day. Analysts, such as Bloomberg’s Eric Balchunas, said this debut was significantly stronger than the average ETF launch, indicating that investors are ready for regulated crypto baskets.
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With the SEC moving more quickly, dozens of new ETF filings surface. The quicker timeline is creating buzz in the market and also pushing asset managers to bring their products forward sooner than planned. For Grayscale, the timing of its Dogecoin ETF filing appears well-planned.
Meanwhile, Dogecoin itself is already moving higher. Between September 15 and 18, the token climbed from $0.26 to above $0.28, an 8% gain in just three days. Large investors, often referred to as whales, have been purchasing hundreds of millions of tokens, which in turn encouraged smaller traders to follow suit.
Right now, the key for Dogecoin is holding above the $0.28 level. If it can stay there while the ETF approval process moves forward, traders believe there could be room for another surge. With Grayscale pushing for its ETF and investors already active in the market, Dogecoin is again in the spotlight as one of the most-watched tokens in crypto.
Featured image from DALL.E, chart from TradingView.com
