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SEC Set to Approve Dogecoin ETF: Bitwise Takes Key Steps

Asset manager Bitwise has recently updated its application for a U.S.-listed spot Dogecoin (DOGE) exchange-traded fund, signaling a potentially favorable response from the Securities and Exchange Commission (SEC).

The latest S-1 filings include amended provisions for in-kind redemptions, a feature absent in their original submission, enhancing approval odds significantly.

ETF analyst Eric Balchunas noted that this engagement suggests the SEC is becoming more receptive to crypto ETF applications, particularly following a trend of increasing approvals.

In-kind redemptions would allow broker-dealers to trade shares directly for DOGE tokens, improving tax efficiency compared to the current cash exchange model.

Since its initial filing in January, Bitwise has led the charge for Dogecoin ETFs, with several other asset managers, including Grayscale, following suit.

Balchunas emphasized that if the in-kind structure is deemed acceptable for the Dogecoin ETF, it is likely to pave the way for similar structures in Bitcoin ETFs, which dominate the market.

SEC Commissioner Hester Pierce also indicated that in-kind redemptions for crypto ETFs are "certainly on the horizon," suggesting a shift in regulatory attitudes.

Currently, Dogecoin is trading at around $0.1615, with a market cap of approximately $24.2 billion, solidifying its position as a significant player in the crypto space.

With a new SEC leadership under the Trump administration favoring a more lenient stance on crypto, experts have raised the probability of approving various spot ETF submissions, including Dogecoin, to over 90% by 2025.

As such, the updated filing by Bitwise marks a critical step forward in the pursuit of mainstream acceptance for Dogecoin as an investment vehicle.