Emily Walker
In a noteworthy move for the memecoin sector and the overall cryptocurrency market, Bitwise Asset Management has submitted an application for a Dogecoin ETF in Delaware.
This filing adds to the increasing list of exchange-traded products aimed at offering fresh investment options in the cryptocurrency realm.
The Potential Impact of Trump’s Presidency on Crypto Legislation
The launch of the Dogecoin ETF application comes at a time when the political climate in the U.S. is evolving. With Donald Trump beginning his second term, there is a wave of optimism surrounding cryptocurrency regulations.
Having previously served as president from 2017 to 2021, Trump has signaled his plan to cultivate a more accommodating environment for digital currencies, a stark contrast to the regulatory measures taken during the Biden administration.
During Joe Biden’s presidency, the U.S. Securities and Exchange Commission (SEC), under Gary Gensler’s leadership, imposed strict regulations on cryptocurrencies. This approach led to ambiguity and a focus on enforcement, resulting in numerous lawsuits against prominent figures in the crypto industry.
The regulatory atmosphere was fraught with uncertainty, leaving many investors and enterprises unclear about compliance and future possibilities. However, changes initiated under President Trump seem to be fostering a more innovative atmosphere for cryptocurrencies.
New appointments in regulatory positions and the formation of a crypto council in the White House signal a shift towards embracing the cryptocurrency sector. Experts believe these developments could open doors for a wider range of cryptocurrencies to access investment products like ETFs.
Bitwise Takes the Lead with Dogecoin ETF Submission
The application for the Dogecoin ETF is influenced by the success of similar products launched in the previous year, especially those targeting Bitcoin (BTC) and Ethereum (ETH).
These ETFs have garnered significant interest from institutional investors, highlighting the demand for cryptocurrency investment alternatives.
Bitwise aims to establish itself as a vital player in this burgeoning market, following its Dogecoin ETF application with similar proposals for XRP and Solana.
Other investment managers are also pursuing ETF approvals for Litecoin (LTC), Hedera (HBAR), and additional memecoins like TRUMP and BONK, illustrated by recent filings from companies such as REX Shares and Osprey.
Although the news of the Dogecoin ETF application has generated excitement, market reactions have been relatively calm. Currently, DOGE’s price has remained fairly steady, showing a 3% drop in the last 24 hours and a 7% decrease over the past week.
This restrained response indicates that while the ETF application is a promising development for the future, it has not yet sparked immediate enthusiasm among investors.
However, if the Dogecoin ETF secures regulatory approval, it may attract significant investment into the memecoin, potentially increasing its market value.
Image courtesy of DALL-E; chart sourced from TradingView.com.