Grayscale Files to Convert its Dogecoin Trust into an ETF

Highlights:

• Grayscale boldly launches trust and seeks same-day ETF conversion, broadening crypto reach.
• Dogecoin whales acquire 560M tokens, triggering a market surge and bullish investor sentiment.
• Grayscale is also broadening its ETF portfolio by proposing XRP and Litecoin ETFs.

NYSE Arca has submitted a 19b-4 form to the US Securities and Exchange Commission (SEC), requesting approval for a rule change to list and trade shares of Grayscale’s spot Dogecoin (DOGE) exchange-traded fund (ETF). This follows Grayscale’s announcement of launching the Grayscale Dogecoin Trust.

The proposed ETF aims to give investors exposure to Dogecoin without requiring direct ownership. Coinbase Custody Trust Company would act as the custodian, and BNY Mellon would manage administration and transfer agent responsibilities.

The filing highlighted that, like Bitcoin and Litecoin, DOGE can be used for purchases or converted to fiat currencies, such as the U.S. dollar, through Digital Asset Trading Platforms or peer-to-peer transactions. Additionally, DOGE is used to reward miners for verifying transactions on the Dogecoin Network.

The 19b-4 filing is a crucial step for listing new ETFs. Once published in the Federal Register, the SEC has 45 days to review and decide whether to approve, reject, or begin proceedings to disapprove the rule change. The review period may be extended to 90 days if the SEC offers a reason or if NYSE Arca agrees.

Crypto Community Surprised by Grayscale’s Dual Move

Grayscale’s decision to launch and simultaneously seek ETF conversion shows its strong push into the crypto ETF market. The company has also filed for ETFs tied to XRP, Litecoin, and Solana, broadening its presence in the industry. The asset manager obtained regulatory approvals for spot Bitcoin and Ethereum ETFs last year.

Bloomberg ETF analyst Eric Balchunas noted, “I’ve never seen a trust launch and then try to convert to an ETF on the same day,” commenting on Grayscale’s decision to convert its Dogecoin Trust into an ETF.

UPDATE: That was FAST. @Grayscale launched a DOGE trust earlier today and they just filed a 19b-4 to convert it into an ETF pic.twitter.com/IU64NeiPsY

— James Seyffart (@JSeyff) January 31, 2025

Dogecoin and Memecoin ETFs Gain Momentum

In a similar move, asset manager Bitwise has registered a statutory trust for a Dogecoin ETF with Delaware’s Department of State’s Division of Corporations. Meanwhile, REX Advisers and Osprey Funds have jointly filed with the U.S. SEC to seek approval for an ETF that includes various memecoins, such as Dogecoin.

The rise in ETF filings has impacted prediction markets. On Polymarket, the likelihood of a Dogecoin ETF getting approved in 2025 increased from 27% earlier this year to 54% after these developments.

Dogecoin and Litecoin might have a regulatory edge over ETFs linked to Solana and XRP. Neither DOGE nor LTC has faced legal challenges with the SEC, which could make their approval process for an ETF smoother. As Balchunas previously mentioned, the first altcoin ETF approved under Trump could be one for Litecoin.

Dogecoin Whales Acquire 560M Tokens

DOGE ETF filings trigger market price surge and investor confidence. In an X post on February 1, crypto analyst Ali Martinez highlighted that Dogecoin whales bought 560 million tokens last week, boosting market confidence. This buying spree follows a recent sell-off, signaling renewed interest from large investors.

Whales have accumulated 560 million #Dogecoin $DOGE in the past week following an intense sell-off, signaling renewed interest from large holders! pic.twitter.com/ObAVfqC9xi

— Ali (@ali_charts) January 31, 2025

At the time of reporting, DOGE was trading at $0.3247, with a 24-hour range of $0.3243 to $0.3407. Amid bullish news, its trading volume increased by 44% to $1.83 billion. Market watchers are eagerly expecting a rally toward $1 following recent bullish developments.